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【Bearish Outlook on Ethereum: Further Downside Risks Likely】
A series of technical indicators and on-chain data are flashing warning signals. As a cautious trader, I am bearish on the market.
Here are the reasons for my analysis #Ethereum #ETH $ETH
1. Weakening technicals: last night, the attempt to break above 3100 failed, and it couldn't hold above the 20-day moving average of 3095. If it breaks the key support at 2900, it may accelerate downward to 2624 or even 2500.
2. On-chain data alerts: the total value locked (TVL) in the Ethereum network is sharply declining, gas fees are decreasing, demand is weakening, and the attitudes of whales and institutions are also turning cautious.
3. Weakness in funding: we can see that the inflow of funds into Ethereum ETFs has slowed down recently. Staking activities are weak, with the number of pending withdrawals as high as 459000 ETH (approximately $848 million), which has also brought additional selling pressure.
4. Unfavorable macro environment: signs of weakness are appearing in the US job market, with some companies announcing layoffs of over 25000 people. In such an environment, most investors typically flee high-risk assets and turn to safer havens.
In summary of my bearish view: While there are still reasons for optimism in the long term, in the short term, bearish forces are dominant.
My target is set at 2624, and if the market continues to deteriorate, going to 2500 or even lower is not impossible.
Keep a close eye on the battle for the $2900 support level!
The above is only my personal market analysis and does not constitute any investment advice.