Key takeaways:
Ether bears are getting louder as the price remains rangebound.
Declining spot volume signals weak demand and increasing ETH price vulnerability.
ETH price could drop to $3,500 if key support levels are lost.
Ether (ETH) remains stuck in the $4,200-$4,500 range for two weeks, amid decreasing spot and institutional demand. This has made some traders bearish, eyeing ETH price falling to $3,500 before any potential recovery.
ETH/USD four-hour chart. Source: Cointelegraph/TradingView
Market sentiment turns negative
The choppiness in Ether’s price, coupled with Bitcoin’s recent drop below $100,000, saw a shift in market sentiment as “sell calls” intensified, according to Santiment.
“Traders have changed their tunes, swinging more and more negatively with expectations of Bitcoin falling back below $100K, Ethereum back below $3.5K,” the market intelligence firm said in an X post on Tuesday.
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An accompanying chart shows a surge in keywords like “selling” and “bearish” since late August, when Ether hit its $4,950 all-time high.
However, markets often move opposite the crowd’s expectations, which could actually be “signalling an ideal buy time,” Santiment writes.
Crypto social volume: Bullish vs. bearish key words. Source: Santiment
Ethereum traders step back
Ether’s spot demand remains subdued over two weeks, with ETH trading volume falling to $2.6 billion on Sept. 8 from $18.5 billion on Aug. 22, an 85% decrease, Glassnode data shows.
The decline in spot volume signals waning investor participation, reflecting weaker conviction among traders.
ETH: Spot volume. Source: Glassnode
While spot Cumulative Volume Delta (CVD), the net difference between buying and selling trade volumes for ETH, has improved slightly, as selling pressure eased. However, it is still way below the levels seen in late August.
ETH: Spot volume delta. Source: Glassnode
Low spot volume and negative spot volume delta indicate weak ETH demand, increasing price vulnerability. However, the bulls could regain their footing if the CVD stabilizes.
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