Summary
- Matrixport reported that the possibility of a further decline for Ethereum is very high.
- The report stated that the recent rally in Ethereum was based on leverage.
- Ethereum currently has high leverage, making it structurally vulnerable to declines.
While the virtual asset (cryptocurrency) market is showing a downward trend, there is a claim that the possibility of a further decline for Ethereum (ETH) is higher than for Bitcoin (BTC).
On the 23rd (local time), Matrixport stated in a report, "Bitcoin needed to maintain above $105,000 to continue its upward trend, but it failed to do so," adding, "The bigger issue is Ethereum. It currently has a very high structural risk for further decline."
The report explained that Ethereum's recent rally was based on leverage. It said, "Ethereum's recent gains, which were driven by leverage, pushed up the price without fundamental value," and continued, "Ethereum is currently showing a pattern where its futures position size has a significant impact."
Furthermore, it added, "Ethereum's leverage remains high. It is a structure that is highly vulnerable to price declines."
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit!["Will AI take our jobs?" Fear spreads…market rattled by a plunge in shares [New York Market Briefing]](https://media.bloomingbit.io/PROD/news/874408f1-9479-48bb-a255-59db87b321bd.webp?w=250)
