With the price charts of most altcoins flashing red candles for the past two days, global crypto market cap has fallen below the $ 2 trillion mark, and is hovering around $ 1.8 trillion at the time of writing.

From Bitcoin and Litecoin to Cardano and Solana – almost the entire market is in the red.

The market was bloody yesterday. Source: Coin360

However, the scar seems pretty deep for the altcoin leader – Ethereum. After losing 5% in value over the period and 16.3% last week, ETH is trading at $ 2,866 at press time. In fact, it fell to a 24-hour low of $ 2,676.

Will Ethereum Go Up Or Down?

Before we dive into the bearish nuances, let’s take a look at “financial astrology” – a form of mathematical psychology based on astronomical science that measures market sentiment in a broader sense.

The moon literally gives us direction and the phases of the moon can help predict price movements.

Assets generally tend to do better in one lunar cycle and tend to weaken in another. And moon phases is a tried and true method that, like other metrics, can be quite reliable.

TradingView’s moon phase indicator shows the moon phases on the chart. The dark circle usually denotes the full moon, while the light circle denotes the waning moon. The lines between the full moon and half moon have their respective colors – increasing or decreasing.

Source: TradingView

An interesting pattern can be observed on the attached graphic. Two weeks after a bright circle is usually a price drop. And vice versa, when Ethereum enters the yellow spots on the chart (dark circles), the price is mostly bullish.

The decline in May came right after the light colored circles flashed on the chart, while the rally occurred in the dark circles in early August.

Ethereum lit a fairly long red candle on September 20th. Remarkably, this is a full moon day. At the moment, Ethereum appears to be entering a “growth phase”.

So what does the behavior of market participants show?

Trader’s Psychology

The state of the Ethereum derivatives market appears to be improving at press time. The number of long contracts liquidated in the last few hours is barely noticeable, while the short-term contracts are more in the foreground. This reinforced the bullish narrative.

Additionally, funding rates are positive on most exchanges, with open interest also returning.

Source: ByBt

Ethereum will try to regain profits in the upcoming trading sessions. If it follows the lunar cycle, ETH price will take rapid strides north in the coming days.

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Annie

According to Ambcrypto

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