Crypto Financial Services firm Matrixport noted in its latest analysis that while Ethereum (ETH)’s recent price movement has been driven primarily by positioning in the futures market, there has not been a strong fundamental dynamic to support this rise.
Matrixport: Ethereum prices rise in futures positions and have no basic support
The report states that Ethereum’s recent sharp pullback is a result of overheating the market structure due to the use of high leverage. Matrixport emphasized that leverage levels are still high, warning that this could create more sales pressure in the short term.
Meanwhile, the company said that Bitcoin (BTC) has tried to turn its direction up with its recent reaction purchases, but considering seasonal trends it is unlikely that this recovery will be sustainable.
According to Matrixport, it is important for Bitcoin to maintain its current technological structure at $98,000. A breakdown below this level can cause a wider revision.
The analysis also highlighted that the strength of leveraged strengths could lead to rapid downward movements in the market again in the short term. This Ethereum structure has given us a warning that it could lead to a faster loss of value in the event of a negative newsflow or a potential market shock.
As a result, Matrixport advises investors to be cautious and notes that the market is currently driven by a balance of leveraged derivative positions rather than basic.
*This is not investment advice.
