Article Summary
Ether’s price dropped by over 4% to around $2,575 on May 15, mirroring declines in the wider cryptocurrency market. The drop was facilitated by long liquidations and a decrease in open interest. “Overbought” RSI and technical resistance suggest profit-taking as a factor in Ether’s price action.
What This Means for You
- Reduced trader confidence and liquidity due to declining open interest can result in increased price volatility.
- Forced sell-offs and low market participation can amplify bearish momentum in the market.
- Overbought conditions, as indicated by RSI above 70, can signal profit-taking opportunities for investors.
- Stiff resistance on the upside and historical precedents suggest potential price corrections for Ether and the broader cryptocurrency market.
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Key takeaways:
Ether’s price fell over 4% to $2,575 on May 15, mirroring similar downward moves elsewhere in the cryptocurrency market.
Long liquidations and a drop in open interest facilitated ETH’s drop.
“Overbought” RSI and technical resistance signal profit-taking.
Ether (ETH) price declined by over 4% in the last 24 hours to around $2,575 on May 15. ETH’s drop mirrored similar downside moves elsewhere in the cryptocurrency market, with the total capitalization falling by approximately 2.40% to $3.3 trillion.
Let’s look at some of the factors driving Ether’s price down today.
ETH price down as long liquidated, and OI falls
Ether’s open interest (OI) has decreased by 4.5% to $31.52 billion over the last 24 hours, according to data from CoinGlass. This decline in OI signals reduced trader confidence and liquidity as investors exit the market, driving down prices.
The drawback in ETH price has triggered liquidations, where long positions valued at $64.6 million were forcibly closed on the day, compared to approximately $21 million in short positions.
Ethereum’s rally stalls with buyer exhaustion
Data from Cointelegraph Markets Pro and TradingView shows Ether’s impressive rally over the last week has pushed its relative strength index (RSI) above 70 on shorter and longer timeframe charts, indicating overbought conditions.
The RSI heatmap from CoinGlass shows ETH’s RSI at 71 and 73 on the 12-hour and daily timeframes, respectively.
Key Terms
- Open Interest (OI)
- Long Liquidations
- Relative Strength Index (RSI)
- Overbought Conditions
- Market Dominance
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