Why is Ethereum ($ETH ) price down today?
Ether’s price fell over 4% to $2,575 on May 15, mirroring similar downward moves across the wider cryptocurrency market.
Long liquidations and a drop in open interest facilitated ETH’s drop.
“Overbought” RSI and technical resistance signal profit-taking.
Ether price declined by over 4% in the last 24 hours to around $2,575 on May 15. ETH’s drop mirrored similar downside moves elsewhere in the cryptocurrency market, with the total capitalization falling by approximately 2.40% to $3.3 trillion.
Ether’s open interest (OI) has decreased by 4.5% to $31.52 billion over the last 24 hours, according to data from CoinGlass. This decline in OI signals reduced trader confidence and liquidity as investors exit the market, driving down prices.
The drawback in ETH price has triggered liquidations, where long positions valued at $64.6 million were forcibly closed on the day, compared to approximately $21 million in short positions.
Data from Cointelegraph Markets Pro and TradingView shows Ether’s impressive rally over the last week has pushed its relative strength index (RSI) above 70 on shorter and longer timeframe charts, indicating overbought conditions.
The RSI heatmap from CoinGlass shows ETH’s RSI at 71 and 73 on the 12-hour and daily timeframes, respectively.
The downside target for the short term is between $2,100 and $2,230, which could provide a good entry position for late investors, according to Van de Poppe.
As Cointelegraph reported, Ether’s crypto market dominance has reached its most overheated levels since May 2021, which have historically preceded major pullbacks.