4 Warning Signs Suggest Ethereum (ETH) Price May Not Recover Soon in Late December

Ethereum (ETH) has traded sideways astir the $3,000 level for the past 2 weeks. Although caller buying came from firms specified arsenic BitMine and Trend Research, the request appears insufficient.

The pursuing information reveals the remainder of the picture, arsenic selling unit remains arsenic strong. As a result, ETH is improbable to signifier a speedy betterment successful the abbreviated term.

Data from CryptoQuant shows that ETH reserves crossed each exchanges had declined steadily for respective months.

However, the inclination reversed successful December. This week, ETH speech reserves accrued from 16.2 cardinal to 16.6 million. That emergence equals astir 400,000 ETH transferred onto exchanges.

On-chain information reveals that 1 “OG whale” unsocial deposited 100,000 ETH into Binance.

Recent BeInCrypto reports amusement that BitMine Immersion Technologies bought 67,886 ETH this week. Trend Research besides purchased 46,379 ETH. Even so, these figures stay smaller than the magnitude of ETH moved onto exchanges.

If ETH is transferred to exchanges for liquidation and exceeds buying absorption, selling unit could intensify. If this inclination continues into the last days of the year, ETH prices whitethorn look further downside pressure.

Another cardinal metric is Ethereum’s Estimated Leverage Ratio, which remains astatine an alarming level, according to CryptoQuant.

This ratio equals speech unfastened involvement divided by coin reserves. It reflects the mean leverage utilized by traders. Rising values suggest much investors are taking connected higher leverage successful derivatives markets.

On October 10, the time with the largest liquidation losses successful marketplace history, the ratio stood astatine 0.72. Currently, the ratio has returned to akin levels. Some readings adjacent scope arsenic precocious arsenic 0.76.

With leverage inactive elevated, Ethereum remains susceptible to tiny terms moves. Such moves could trigger cascade liquidations.

BeInCrypto antecedently reported that Ethereum’s Coinbase Premium turned antagonistic successful December.

During Christmas week, the indicator moved further into antagonistic territory. It presently stands astatine -0.08, the lowest level successful the past month.

This indicator measures the percent terms quality betwixt ETH connected Coinbase Pro (USD pair) and Binance (USDT pair). Negative values bespeak little prices connected Coinbase.

This inclination suggests that US investors proceed selling astatine discounted prices. ETH whitethorn conflict to retrieve successful the abbreviated word until the Coinbase Premium turns affirmative again.