Ethereum (ETH) is trading lower on Friday, approaching its critical daily support level at $2,461. A close below this mark could signal further declines for the cryptocurrency. This bearish outlook is reinforced by a negative reading on the Coinbase Premium Index and a long-to-short ratio below one, indicating a decrease in demand and a growing number of traders anticipating price drops.
CryptoQuant's Ethereum Coinbase Premium Index shows notable weakness, remaining below neutral levels. This index measures the price difference between Coinbase Pro (USD pair) and Binance (USDT pair) and is a vital metric for gauging the activity of large-wallet investors, often reflecting whale accumulation trends. Currently, the index is at -0.072, consistently declining since early October. Should this trend continue, it could heighten selling pressure on Ethereum.
Moreover, data from Coinglass reveals that ETH's long-to-short ratio stands at 0.84. This figure, being below one, signals a bearish sentiment in the market, suggesting that more traders expect the price to fall.
As Ethereum nears its daily support level of $2,461, it has faced rejection near a descending trendline—drawn from highs since late May—resulting in a decline of over 7.6% up to Thursday.
If ETH breaks and closes below the $2,461 support level, it may experience a further decline of approximately 12%, potentially retesting the September 6 low of $2,149.
On the flip side, if Ethereum finds support around the $2,461 mark and manages to close above the 50-day Exponential Moving Average (EMA) at $2,560, it could stage a rally, targeting a retest of its Monday high at $2,769.
October 2024, Cryptoniteuae