Key takeaways:
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 (ETH) 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.
Let’s look at some of the factors driving Ether’s price down today.
ETH price down as long liquidated, and OI falls
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.
Related: 3 reasons why Ethereum price could rally to $5,000 in 2025
The broader crypto market also experienced a sharp deleveraging event, with total liquidations reaching $312 million across all assets.
The combination of forced sell-offs and low market participation has amplified Ether’s bearish momentum.
The 24-hour long/short ratio of 0.9558 and a 32.5% drop in trading volume suggest a waning bullish sentiment.
Ethereum’s rally stalls with buyer exhaustion
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.
Ether’s price also faces stiff resistance on the upside, defined by the $2,600 and $2,800 range. Note that this is where the 200-day SMA currently sits.
Popular crypto analyst Michael van de Poppe said Ether is required to overcome this barrier to increase its chances of recording new highs for 2025.
“If this happens on $ETH, that would signal a lot of potential upside to come for the entire #Altcoin market.”
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.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
