The price of Ethereum has crashed, causing concern among investors about whether this marks the start of a new bear market or a short-term liquidation event. The drop in price was influenced by the breaking of the $3,000 level and 200-day moving average, which is a significant trend indicator. If the market fails to climb back above this level soon, a longer and deeper correction could be expected. Additionally, the price attempted to break out of a falling wedge pattern but ended up in a bull trap, leading to a significant drop. If a quick recovery does not occur, a consolidation between the $2,800 and $2,400 levels is likely for the coming weeks. When analyzing the futures market, it is noted that the open interest metric has not shown a significant decline despite the price drop. This suggests that if the crash is due to a liquidation cascade, there may be more liquidations and drops in the short term if selling pressure continues. Further research is needed to understand the underlying market dynamics.



Other News from Today