Ethereum (ETH) price has decreased significantly, dropping by 8% on January 13, after losing its weekly support at $3,200. This downturn has led to increased selling pressure and marked a significant liquidation event, with over $90 million in leveraged positions wiped out, including $77 million in long positions. In recent weeks, the futures market for Ethereum has turned predominantly bearish, with open interest peaking at $32 billion before retracting to $28 billion, indicating traders are closing long positions or taking profits on shorts. Furthermore, Ethereum's supply has turned inflationary in the past ten months, as the circulation has risen by 45,000 ETH per month, surpassing the amount burned. Despite expectations following the shift to a proof-of-stake mechanism, low demand for Ethereum tokens has led to inflationary conditions. Currently, if the price continues to weaken, Ethereum could drop to support levels around $2,800, as observed in the provided technical analysis.

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