Ethereum (ETH) is facing heightened volatility as key on-chain indicators flash warning signs. With ETH struggling to maintain critical support levels, the coming days could determine whether bulls can regain control or if bears will extend the downward momentum.
Ethereum Whales on the Brink of Liquidation
Ethereum’s price has dropped nearly 3% in the past 24 hours, slipping below the $1,900 mark. This decline is putting significant pressure on large leveraged positions within the decentralized finance (DeFi) ecosystem, particularly on MakerDAO.
According to Lookonchain data, two major whale vaults on MakerDAO—holding a combined 125,603 ETH worth approximately $235 million—are approaching liquidation. The vaults currently have a dangerously low health ratio of 1.07, indicating imminent liquidation if ETH continues to decline.
These vaults face forced liquidations at ETH prices of $1,805 and $1,787, respectively. If triggered, the resulting sell-off could exacerbate downward pressure, leading to further price declines.
Bearish Indicators Suggest Further Downside
Ethereum’s technical indicators paint a bleak picture. The Relative Strength Index (RSI) has dropped to 24.37, signaling that ETH is in oversold territory. While this typically suggests the potential for a short-term relief rally, historical data indicates that oversold conditions can persist if bearish momentum remains strong.
Additionally, Ethereum’s Directional Movement Index (DMI) underscores a deepening downtrend. The Average Directional Index (ADX) surged from 23.47 to 38.6, highlighting increasing bearish momentum. Meanwhile, the negative directional indicator (-DI) has spiked to 40.23, while the positive directional indicator (+DI) has fallen to 10.6, confirming that sellers are firmly in control.
Will Ethereum Fall Below $1,800?
If ETH fails to hold its next support level at $1,823, a drop toward $1,759 is likely. Such a move would trigger the liquidation of whale vaults on MakerDAO, potentially causing a cascading sell-off.
However, if sentiment shifts and buyers step in, Ethereum could reclaim the $1,938 resistance level. A breakout above this zone might push ETH toward $2,104, with further upside potential to $2,320 and beyond.
For now, Ethereum remains at a critical juncture, with both bulls and bears bracing for the next decisive move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
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