Ethereum can be subjected to harsh sell pressure this week, here’s why

ETH is perhaps liable to extra promote stress as Voyager liquidates its holdings.
Lengthy positions shift in favor of shorts as bearish market situations prevail.

The ghost of 2022’s crypto contagion is but to be exorcised. A wave of ETH promote stress is perhaps on the best way courtesy of distraught crypto agency Voyager.

Reasonable or not, right here’s Ethereum’s market cap in BTC’s terms

Crypto analysis firm Arkham not too long ago confirmed that voyager has commenced the method of liquidating its digital belongings.

The corporate filed for chapter after a sequence of unlucky market occasions that led to heavy losses. Preliminary knowledge reveal that Voyager has barely over 100,000 ETH in its addresses which might be liquidated to pay collectors.

Voyager is within the strategy of liquidating their on-chain belongings.

They’re at the moment sending 7-8 figures of crypto to Wintermute and Coinbase addresses each day.

They’ve over 100K ETH remaining to unload – that is over $150M!

Arkham might be dropping a deep-dive at 12:00 EST. pic.twitter.com/XhACb5wlxa

— Arkham (@ArkhamIntel) March 9, 2023

The quantity of ETH to be liquidated is price over $150 million. The report additional revealed that the funds might be despatched to Coinbase and Wintermute addresses.

These liquidations might translate to a considerable amount of promote stress throughout the subsequent few days. Such an final result may set off a deeper bearish transfer beneath $1,500.

ETH bears have to date pushed the value down by roughly 12% from its February highs to its $1,527 press time value. Nonetheless, the Voyager liquidations will not be the one bearish concerns for bullish merchants.

Supply: TradingView

Bullish expectations dimmed for the previous few weeks courtesy of anticipated charge hike will increase. Federal Reserve chairman Jerome Powell not too long ago reignited these bearish expectations throughout a current Senate listening to. He revealed that the FED might need to extend charges to have a greater likelihood at combatting inflation.

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Are ETH derivatives merchants taking benefit?

With the aforementioned issues taking middle stage, shorts merchants might be seeking to take benefit. That’s possible the case in keeping with a number of metrics together with the futures estimated leverage ratio. The latter has improved over the past two weeks as costs dropped.

Supply: Glassnode

The surge within the futures estimated leverage ratio is especially evident within the final two days confirming wholesome demand for leverage.

The worth has been bearish throughout the identical time. Additionally, ETH’s open curiosity metric is on the rise this week and particularly within the final two days. A possible signal that there’s demand for shorts.