Key Takeaways
Why is ETHfi’s recent rally under threat?
Bearish signals from the Parabolic SAR and MACD suggest sellers are taking control, risking a price drop below key support.
Can buyers prevent a decline?
Spot investors purchased $3.37M worth of ETHfi in 48 hours, showing strong accumulation that could offset bearish pressure.
Ether.fi [ETHfi], the liquid staking protocol, recorded massive price gains in the past day after its third-quarter-to-date report revealed earnings had surged to $12.92 million—the highest level since inception.
The 11% gain recorded within this period is, however, under threat, as bears appear to be tightening their grip on the market.
This development suggests that a potential price decline could remain on the horizon, putting ETHfi at risk of falling.
The key question is whether the asset can hold its ground or succumb to bearish pressure. AMBCrypto analyzes the factors behind the move.
ETHfi at a critical zone
The recent surge in ETHfi has been building on trading activity over the past weeks, as reflected on its 1-day chart.
On the 11th of September, the asset broke out of a bullish consolidation pattern—highlighted in orange—and began trending around its support level, where it has remained for several days.
Source: TradingView
Since then, ETHfi has shown little directional movement, with the price oscillating within defined ranges on the chart.
Under normal conditions, the support level should act as a catalyst for a rally, but that has not been the case.
Instead, ETHfi has continued to struggle at this level, raising doubts about whether buyers have enough strength to push it higher.
Indicators give a warning
ETHfi’s struggles may be an early signal of a potential decline in the coming days, based on technical indicators.
The Parabolic SAR (stop and reverse) has placed dots above the price, a clear sign that sellers currently control the market and are actively distributing.
Source: TradingView
At the same time, the Moving Average Convergence Divergence (MACD) has formed a Death Cross pattern.
This occurs when the blue MACD line crosses below the orange signal line, indicating that bearish sentiment is gaining momentum.
If the Parabolic SAR continues to place dots above the price and the MACD maintains its downward trend, ETHfi could plunge further, breaking below its key support level where it has traded for nearly 14 days.
Spot investors aren’t hold back
Spot investors, however, appear to be showing patience, choosing to accumulate rather than distribute their holdings.
Data from CoinGlass shows that investors have been accumulating ETHfi consistently over the past five days.
In the last 48 hours alone, $3.37 million worth of ETHfi has been purchased, suggesting that investors are increasing their exposure despite the bearish signals.
Source: CoinGlass
If accumulation continues at this pace, the chances of ETHfi dropping below its support level would remain slim.
Instead, sustained buying pressure could create conditions for ETHfi to reverse course and potentially establish a stronger bullish trend on the charts.
