The report highlights a concerning unraveling in Ethereum (ETH). While ETH had previously ridden a wave of optimism fueled by ETF developments, it is now reportedly buckling under the weight of overleveraged futures positions. This current weakness contrasts sharply with earlier sentiment, as detailed in 10x Research’s June 5 report, which questioned the true nature of ETH ETF inflows.
Beyond Ethereum’s specific vulnerabilities, the report points to broader systemic concerns:
- Drying Liquidity: “Market-based liquidity,” often a silent engine for market rallies, has quietly begun to dissipate. This reduction in available capital could impede future upward price movements.
- Stablecoin Flows: Even the often-overlooked stablecoin flows are painting a telling picture, indicating that some of the market’s largest buyers are pulling back as the summer approaches.
As these fundamental shifts occur, key technical support levels across the market are being tested. The central argument of the 10x Research report is that both BTC and Ethereum are undergoing significant corrections, signaling a clear shift from previously bullish trends to bearish ones.
The report specifically highlighted Ethereum‘s vulnerability to breaking below the $2,420 level, a scenario that is now playing out. More critically, 10x Research warns that two significant indicators are on the verge of flipping bearish for Bitcoin. This potential inflection point for the leading cryptocurrency could have widespread and profound implications across the entire crypto market, including further impacting Ethereum.
The question remains: what’s driving this stall, and what could happen if these crucial support levels fail to hold? The report suggests a period of heightened caution for investors as these bearish signals emerge.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/market/bitcoin-dominance-soars-but-key-indicators-flash-bearish-signals/