Ethereum breaks below $4K as $3.9K holds support: Liquidations in billions

The chances of Ethereum (ETH) surpassing Bitcoin as the most valuable crypto by market capitalization in 2022 are low. 
The Friday candle is $4,511, reaching a daily high of $4,654 but, this was followed by a bearish drop, with Ethereum falling to $4K

Ethereum fell below $4K as investors lost billions in liquidations. The data from Coinglass shows a huge surge in liquidations for today, amounting to billions. These levels were not seen since early September and made a major impact on ETH price movement.

Ethereum liquidations data from Coinglass
Ethereum liquidations data from Coinglass

As per the chart above, over 2.08 billion USD worth of longs were liquidated, followed by nearly $484 million worth of short liquidations. This was a scenario that added to Ethereum’s bearish movement. 

On the other hand, the price movement for today was quite bearish. The data from CoinmarketCap shows that the Friday candle is $4,511, reaching a daily high of $4,654. However, this was followed by a bearish drop, with Ethereum falling to $4K.

For Saturday, the daily candle opened at $4,215 and reached a daily high of $4,238. However, this leads to a bearish drop, leading to a daily low of $3,503. 

However, ETH has been following an optimistic price action for the past few days. Following Vitalik Buterin’s plans of limiting calldata per block, the ETH prices recovered from the fears of the COVID-19 variant.

Ethereum price analysis on the daily chart

The Ethereum price analysis on the daily chart shows a bearish outburst for the world’s second-biggest cryptocurrency. The market cap of the token dropped to $471 million while dominance is at 21.17%.

The MACD indicator on the daily chart shows that the signal line (orange) crossed above the MACD line (blue). This bearish divergence for ETH represents the onset of bears in the market.

The bearish momentum followed by Ethereum is also supported by the RSI indicator, which shows that the RSI line is dropping below the 50-level. The gradient is negative, which means that prices will continue to fall in the near future. However, the $3.9K level continues to hold support.

Ethereum price analysis
Ethereum price chart by TradingView

This analysis is quite bearish when compared to TheCoinRise’s Ethereum analysis of Dec 1, when ETH was nearing its all-time high. 

However, investors are very bullish about the future of the token. Recent research in Australia claims that ETH is a better store of value than BTC.