Ethereum & Chainlink Trading Levels See New Lows in the Past 365 Days: Santiment

According to Santiment, Ethereum and Chainlink are eyeing combined lowest levels of 30-day and 365-day average trading returns on Sunday. Historically, the more other traders experience losses, the more reason there is to buy at lower prices.

📊 Chainlink and Ethereum are seeing their combined lowest levels of 30-day (short term) and 365-day (long term) average trading returns Sunday. Historically, the more 'blood in the street' there is from other traders, the more justification there is to buy into others' pain. pic.twitter.com/tuPHUpKVsd

— Santiment (@santimentfeed) August 4, 2024

On Saturday, Ethereum could not maintain its position above its primary support levels, around $3,000. Although it is the second largest asset among the top 10 cryptocurrencies according to market capitalization, Ethereum has yet to begin to rebound from the recent market dip.

Ethereum is now clinging to a crucial support level and is at a tipping point that, according to analysts, could result in a slide below $2,800 if it is unable to maintain its current position. Based on statistics provided by CoinMarketCap, Ethereum is now trading at $2,905 at the time of publication, representing a decrease of 10.09% from July 28th. Other traders also suggested that Ether’s price might drop below $2,800 before any recovery begins.

On the other hand, Chainlink’s value has dropped 15% in the past three days, falling from $13.76 to $11.44 after a brief rally to $15 on July 21. Chainlink continues to exhibit a bearish trend in the short term. LINK’s price has dropped even lower over the past three days, with the Open Interest (OI) falling from $152 million to $143.7 million. This represents a significant decrease. The price and the open interest (OI) have decreased, indicating that traders are pessimistic about the asset. 

It appears that the speculators are exercising some degree of prudence because they are unwilling to take long positions. A significant drop in Chainlink’s Realized Capitalization is one of the primary contributors to the adverse attitude surrounding the company. This crucial on-chain measure, which displays the total amount of realized earnings minus realized losses, has been observed, decreasing from $75.51 million to $11.14 million.