Crypto Finance Company Matrixport Explained the Reason Behind the Volatility Experienced in Ethereum! Here are the Details

Crypto financial services company Matrixport stated in its latest analysis that the recent price movements of Ethereum (ETH) are largely due to positioning in the futures market, but there is no strong fundamental (fundamental) dynamic to support this rise.

Matrixport: Ethereum Price is Rising with Futures Positions, Lacking Fundamental Support

The report stated that the sharp pullback experienced by Ethereum in recent days was a result of an overheated market structure due to high leverage usage. Matrixport warned that the leverage levels are still high, indicating that this situation could create more selling pressure in the short term.

On the other hand, the company stated that Bitcoin is trying to turn its direction upward with reaction purchases in recent days, but considering seasonal trends, the likelihood of this recovery being sustainable is low.

According to Matrixport, it is critical for Bitcoin to defend the $98,000 level in order to maintain its current technical structure. A breakdown below this level could trigger a broader correction.

The analysis also emphasized that due to the intensity of leveraged long positions, sharp downward movements in the market could be experienced again in the short term. Due to this structure of Ethereum, it was warned that it could lose value more rapidly in the event of negative news flow or a market shock.

As a result, Matrixport stated that the markets are currently shaped not by fundamental data, but by the balance of leveraged derivative positions, advising investors to be cautious.

*It is not investment advice.

Follow our Telegram group, Twitter account, and Youtube channel now for exclusive news, analyses, and on-chain data! Also, start live price tracking immediately by downloading our Android and IOS apps!