Ethereum’s Descent: A Tragic Tale of Patterns and Pessimism

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Ah, the Ethereum price, a wretched soul wandering in the bleak expanse of a bear market, where three ominous chart patterns loom like specters, whispering of a potential 20% crash that may soon befall it. How tragic! 😱

Once a proud titan, Ethereum (ETH), the second-largest coin in the cryptosphere, has retreated to a mere $2,670 on this fateful Monday, a staggering decline of over 35% from its lofty heights in December. What a fall from grace! 😢

As it grapples with fierce competition in the blockchain arena, Ethereum finds itself besieged by the likes of Berachain (BERA), Solana (SOL), and the ever-ambitious BNB Smart Chain (BNB). The irony! A once unassailable fortress now beset by rivals. 🏰

Moreover, Ethereum is losing its once-coveted market share to the nimble layer-2 blockchains, such as Base and Arbitrum, which have charmed the masses with their lower costs. In a cruel twist of fate, DEX protocols on Ethereum managed a volume of $81 billion in the last 30 days, while Base (BASE) and Arbitrum (ARB) processed $35 billion and $28 billion, respectively. Oh, the numbers! They mock us! 📉

Alas, the third-party data reveals a disheartening truth: Ethereum ETFs are failing to attract the inflows that were so eagerly anticipated. Instead, they have suffered outflows over the last two market days, culminating in a total of $3.15 billion. Meanwhile, Bitcoin ETFs bask in the glory of nearly $40 billion in inflows. How the mighty have fallen! 😂

Ethereum’s daily trading volume continues its sorrowful descent, now languishing at $126 billion, a far cry from the December high of $330 billion. Its revenue, too, has plummeted to a meager $5 million on Sunday, a stark contrast to the over $58 million it boasted in November of the previous year. What a tragic comedy! 🎭

Furthermore, Ethereum’s futures open interest has collapsed from its 2024 highs, now standing at a mere $23.3 billion, down from this month’s peak of $35 billion. The futility of it all! 😩

Ethereum price patterns point to more downside

Behold the daily chart, a harbinger of doom, suggesting that Ethereum’s value teeters on the brink of further decline. It has formed a death cross on February 9, as the 50-day and 200-day Weighted Moving Averages crossed paths, sealing its fate. How poetic! 📉

In its tragic trajectory, the coin has also birthed a rising wedge pattern, a cruel twist of fate where two ascending converging trendlines mock its aspirations. And let us not forget the bearish pennant pattern, a long vertical line and a triangle, a fitting symbol of its plight. 😅

In most instances, these patterns herald more misfortune, with the next level to watch being a dismal $2,166, its lowest point this month. A breach below that threshold may plunge it further into despair, potentially down to $2,000. Such is the fate of the fallen! 😔

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2025-02-24 17:19