Ethereum is experiencing one of its biggest declines yet. It broke the $3k support and is trading below the $2,900 mark.
The altcoin is one of the top losers in the top 100, as it is down 8% at the time of writing. It opened trading at $3,116 and slipped below $2,900 a few hours ago. A few minutes ago, it dipped lower, hitting a low of $2,750.
ETH marks its second day of consistent declines. On Friday, it halted its uptrend after breaking above the $3,400 barrier. After that, it experienced massive declines, closing at $3,300. The selling pressure continued into the day, leading to a 5% dip.
The ongoing decline stems from a massive shift in the world economy. Traders fear massive uncertainty following the start of a trade war between the United States, China, Canada, and Mexico. Economists warn of dire consequences to the world’s economy if the battle continues.
However, the crypto market grapples with massive selloffs on Sunday. It opened the day at $3.41 trillion but slipped lower as several cryptocurrencies dipped. It retraced to a low of $3.25 trillion, representing a more than 10% decline.
The derivatives market sees massive liquidations. Traders lost over $1 billion in the last 24 hours. Short positions account for more than 90% of the total REKT capital. They lost over $900 million, while long positions made up $138 million. Current open interest suggests that investors expect more downtrends as short position traders outbid long traders.
Ethereum is Almost Oversold
The relative strength index dips lower as selling pressure increases. It was at 42 on Saturday, but currently, it is at 34. The metric edges closer to 30. A slip below this mark will cause Ethereum to be oversold.
The moving average convergence divergence continues printing sell signals. It displayed a bearish divergence a few days ago, continuing the trend as the 12-day EMA and 26-day EMA see more downside movement. It is worth noting that the asset trades above its 78% fib level.
