Ethereum price continued its freefall today, reaching a multi-month low of $2,925, its lowest level since July 11. ETH has now plunged by 40% from its year-to-date high, erasing billions of dollars in value. Still, the token could be on the verge of a rebound, even as Machi Big Brother and other bulls get liquidated.
Machi Big Brother Liquidated
The ongoing Ethereum price crash coincided with a jump in liquidations. Data compiled by CoinGlass shows that $132 million in Ethereum positions were liquidated over the last 24 hours. Bitcoin positions worth over $133.15 million were liquidated in the same period.
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One of the most liquidated tokens was Machi Big Brother, which suffered a $5.6 million liquidation. According to Arkham, the trader’s entire position could be wiped out if the Ethereum price continues to fall.
Nansen data shows that Machi Big Brother’s perpetual futures account has had a realized loss of over $17 million and an unrealized one of $295k.
The ongoing liquidations, including that of Machi, have contributed to the ongoing Ethereum price crash. At the same time, data shows that spot Ethereum ETFs had over $257 million in outflows this week. These funds have shed over $1.47 billion in the last three consecutive weeks.
Ethereum Price Technical Analysis Points to a Rebound
The daily timeframe chart shows that ETH has been in a strong downward trend over the past few months, falling from a high of $4,965 in August to the current $2,900.
Ethereum price has now moved below the 50% Fibonacci Retracement level at $3,170. It has also moved below the Supertrend indicator, while the Average Directional Index (ADX) has jumped to 41. An ADX reading of 40 indicates the downtrend is gaining momentum.
Most importantly, the ETH price has slowly formed a falling wedge pattern, a pattern composed of two converging trendlines. The two lines are about to converge, suggesting a strong rebound in the near term. A rebound could see it jump to the psychological $4,000 level, up by 37% from the current level.
However, a drop below the important support at 61.8% Fibonacci Retracement at $2,150 will invalidate the bullish ETH forecast.
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