Today, Ethereum has undergone a decrease in two -digit prices while the climbing of geopolitical tensions between the confidence of investors from Israel and Iran in the world markets.
The data on the chain reveal that the sharp drop in ETH has sparked a wave of short positions on its long -term market, reporting that many traders are now betting on new price loss.
ETH blocks in the middle of the Middle East disorders
On Friday, the air strike launched by Israel intensified fears of a broader conflict in the Middle East, sending shock waves through traditional and digital asset markets.
ETH, the second largest cryptocurrency by market capitalization, was hardly affected, plunging more than 10% in the last 24 hours while traders react to increasing geopolitical uncertainty.
The data on the chain suggest that many traders expect this drop in prices to continue, as reflected in the readings of the long / short ratio of the room. At the time of the press, this amounts to 0.86, indicating that more traders bet against Altcoin.
This ratio compares the number of long and short positions on a market. When the long / short ratio of an asset is greater than 1, there are more short than short positions, which indicates that the traders are bet mainly on a price increase.
Conversely, as we can see with ETH, a ratio lower than one indicates that most traders position themselves for a drop in prices. This shows the lowering feeling and the growing expectations of a continuous decline.
In addition, the negative balance of ETH powers (BOP) supports this downward perspective. At the time of the press, this momentum indicator is at -0.69, confirming the decreasing demand for the Altcoin leader among market players.
The BOP indicator measures the strength of buyers compared to sellers on the market. A Reading of Bop Negative suggests that the sale of pressure dominates, indicating a lack of fresh demand and a higher probability of continuous price drop.
The market awaits the next ETH movement
At the time of the press, the ETH is negotiated at $ 2,523, holding just above the support floor at $ 2,424. If the sale of the sale is strengthened, the part could break below this floor, which potentially triggered a new drop to $ 2,027.
Conversely, a renewed wave of purchase interest could invalidate the lowering perspectives. In this case, ETH could bounce back and come together around $ 2,745.
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