Ethereum price continued its freefall today, reaching a low of $2,925, its lowest level since July 11. ETH has now plunged by 40% from its highest level this year, 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 Ethereum positions worth $132 million were liquidated in 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, who suffered a $5.6 million liquidation. According to Arkham, the trader’s whole position worth could be wiped out if the Ethereum price continues falling.
Data compiled by Nansen 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, has 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 the ETH price has been in a strong downward trend in the past few months, moving 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 figure of 40 is a sign that the downtrend is gaining momentum.
Most importantly, ETH price has slowly formed a falling wedge pattern, which is made up of two descending and converging trendlines. The two lines are about to converge, meaning that it may stage a strong rebound in the near term. A rebound could see it jump to the psychological level at $4,000, 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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