Ethereum faces massive sell-off | Long-term trends remain optimistic

Ethereum is currently experiencing short-term selling pressure, but the long-term outlook remains optimistic according to several indicators. surrounding emotions ETH The past two weeks have been fairly quiet since the brutal mass liquidation event on October 10th.

Derivatives data shows that open interests are in the range of $19 billion to $20 billion, down from $27 billion before liquidation. In reality, this is a relatively deleveraged market, which is generally bearish in the near term. Funding rates have rarely been positive and have briefly fallen into the negative over the past few weeks.

The problem is NetFlow data exchange. On October 15, the 7-day moving average showed a massive outflow of -31,000 ETH, indicating massive accumulation. However, inflows have now shifted to +3,000 units, highlighting selling pressure even as prices fall. Until this trend reverses, traders should watch out for further downside.

But there is a silver lining. Ethereum is still trading well above its realized price of $2,300, which is the basic support level. A drop below that usually indicates capitulation and a bear market. that MVRV ratio This means that at 1.67, holders are currently earning an average of 67%.

So holders are profitable but not overheated and the market is not happy. That’s actually a healthy combination for bulls in the medium term. There’s even more to profit from this consolidation step, especially with the news that T. Rowe Price’s new multi-coin ETF will include Ethereum.

conclusion

Ethereum is facing short-term selling pressure as exchange inflows increase, but its MVRV of 1.67 and realized price trading above $2,300 suggest that its healthy long-term bullish outlook remains intact.

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