Ethereum hasn’t been spared the drawdown of early this week, reading from the formation in the daily chart.
Although there are pockets of strength and ETH is stable in the past 24 hours, the coin has been deep in red in the past trading week.
To quantify, ETH slid 16 percent against the USDT week-to-date, sling below a crucial support level in a bear breakout formation.
$326 Million in Ethereum liquidation on May 9
Currently, bears are in the driving seat as ETH risks crashing below the $2k level and registering new 2022 lows.
ETH is inches away from January 2022 lows at spot rates, and any confirmation of May 9 drawdowns would force the coin into new territory, causing even more liquidations.
Last 24h liquidations breakdown:
Bitcoin – $355M
Luna – $100M
Solana – $24M
ApeCoin – $16M
GMT – $15M
Doge – $14M
XRP – $13M
Near – $11M
Polkadot – $10M
Litecoin – $9M
EOS – $9M
Total: $1.1 billion in liquidations
Traders liquidated: 287,061
— Blockworks (@Blockworks_) May 10, 2022
On May 9, the sharp dump below $2.5k caused over $326 million in long liquidations, a cascade that further pressured ETH.
Instagram Supports Ethereum and MetaMask
The development is amid positive news. For instance, Instagram, one of the world’s top social media platforms, said it would support Ethereum and MetaMask.
Instagram is looking at NFTs and how the social platform can be used as a medium for supporting talented artists.
NFTs on Instagram 💫
We’re testing ways for creators and collectors to share NFTs they’ve created or own on Instagram with a shimmer effect. pic.twitter.com/tXGoH1Z6Gf
— Instagram (@instagram) May 10, 2022
As a pilot, Instagram said it would begin by supporting a handful of U.S. creators and collectors. They will share their digital collectibles, and Instagram will automatically tag the owner and the creator.
The tagging feature will be vital in tracing back the art to the creator, a positive, especially for upcoming creators who need exposure.
Ethereum Price Analysis
ETH is down 16 percent week-to-date versus the USDT, trading in a bear breakout formation. At spot rates, the coin is also retesting January 2022 lows.
There could be an opportunity for sellers to unload on every retracement towards $2.5k in the short term.
However, traders must act cautiously since the recent May 9 sell-off could be climactic, marking the end of the bear run from early April. Still, a close below $2.1k and January 2022 lows may be the spark for another panic sell. The resulting liquidation may force ETH to July 2021 lows of $1.8k.
Conversely, gains above $2.5k may solidify bulls, possibly building a foundation for recovery back to $3.5k, marking Q1 2022 lows as a critical support line.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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