• Ethereum price has been stuck below the important support level at $1,800 as its volume and volatility have declined.
• Data shows that the overall volume of Ethereum traded has dropped in the past few days and open interest has dropped to 3.48 million ETH.
• The Average True Range (ATR) for Ethereum volatility has also slipped to its lowest level since March 10.
Ethereum Price Stuck Below $1,800
Ethereum price drifted downwards on Wednesday as the coin’s volume and trading volatility slumped. ETH was stuck below the important support level at $1,800, where it has been in the past few days. It remains about 16% below the highest point this month.
Volume & Open Interest Decline
Data compiled by CoinGecko shows that the volume in the past 24 hours stood at about $6.5 billion, which is lower than average. Additionally, open interest has dropped to 3.48 million ETH. As shown below, futures open interest has remained in a tight range in the past few days.
The other notable thing is that Ethereum’s volatility has dropped sharply in the past few days. Using moving averages on the daily chart, we see that the coin is loitering at its 25-day and 50-day exponential moving averages (EMA). This is a sign that there have been no major swings in the price and Bollinger Bands width has narrowed significantly as well. Most importantly, Average True Range (ATR) slipped to its lowest level since March 10th indicating a decrease in volatility overall.
Cause of Retreat
The likely reason for this lack of movement is due to a lack of catalysts or excitement within cryptocurrency markets this month along with investors taking profits after remarkable comebacks earlier this year as well as Lido activating V2 software making it possible for people to withdraw their coins from liquid staking contracts previously not allowed before Tuesday’s activation date .
In conclusion Ethereum price prediction looks bearish as long as volume and volatility remain low with no good news or catalysts coming from within crypto markets this month causing investors to take profits or take out their coins from liquid staking contracts due to new V2 software activation date allowing one so do so on Tuesday .