Ethereum can be subjected to harsh sell pressure this week, here’s why

ETH is perhaps susceptible to extra promote strain as Voyager liquidates its holdings.
Lengthy positions shift in favor of shorts as bearish market situations prevail.

The ghost of 2022’s crypto contagion is but to be exorcised. A wave of ETH promote strain is perhaps on the best way courtesy of distraught crypto agency Voyager.

Life like or not, right here’s Ethereum’s market cap in BTC’s terms

Crypto analysis firm Arkham lately confirmed that voyager has commenced the method of liquidating its digital belongings.

The corporate filed for chapter after a collection of unlucky market occasions that led to heavy losses. Preliminary knowledge reveal that Voyager has barely over 100,000 ETH in its addresses which will likely be liquidated to pay collectors.

Voyager is within the technique of liquidating their on-chain belongings.

They’re presently sending 7-8 figures of crypto to Wintermute and Coinbase addresses each day.

They’ve over 100K ETH remaining to dump – that is over $150M!

Arkham will likely be dropping a deep-dive at 12:00 EST. pic.twitter.com/XhACb5wlxa

— Arkham (@ArkhamIntel) March 9, 2023

The quantity of ETH to be liquidated is value over $150 million. The report additional revealed that the funds will likely be despatched to Coinbase and Wintermute addresses.

These liquidations could translate to a considerable amount of promote strain inside the subsequent few days. Such an final result may set off a deeper bearish transfer under $1,500.

ETH bears have thus far pushed the worth down by roughly 12% from its February highs to its $1,527 press time value. Nevertheless, the Voyager liquidations should not the one bearish concerns for bullish merchants.

Supply: TradingView

Bullish expectations dimmed for the previous few weeks courtesy of anticipated price hike will increase. Federal Reserve chairman Jerome Powell lately reignited these bearish expectations throughout a latest Senate listening to. He revealed that the FED might need to extend charges to have a greater likelihood at combatting inflation.

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Are ETH derivatives merchants taking benefit?

With the aforementioned issues taking middle stage, shorts merchants will likely be seeking to take benefit. That’s seemingly the case in line with a number of metrics together with the futures estimated leverage ratio. The latter has improved during the last two weeks as costs dropped.

Supply: Glassnode

The surge within the futures estimated leverage ratio is especially evident within the final two days confirming wholesome demand for leverage.

The value has been bearish throughout the identical time. Additionally, ETH’s open curiosity metric is on the rise this week and particularly within the final two days. A possible signal that there’s demand for shorts.