Shift

Market Events Driving Ether.Fi Price Movement

Trading on technical factors in absence of major catalysts, ETHFI price has declined 1.77% over the past 24 hours as no significant news events have emerged in the past week to drive directional movement. The liquid staking protocol’s token is experiencing technical selling pressure as it approaches a critical support confluence.

The current price action reflects broader cryptocurrency market sentiment, with ETHFI following the general risk-off tone that has characterized digital assets in recent sessions. Without specific catalysts driving individual token performance, technical levels have become the primary focus for traders positioning in Ether.Fi.

Price Action Context

ETHFI price currently trades below all major short and medium-term moving averages, creating a bearish technical backdrop. At $1.05, the token sits significantly below its 7-day SMA of $1.14 and well under its 20-day SMA of $1.43. However, the proximity to the 200-day moving average at $1.09 presents a critical juncture for Ether.Fi technical analysis.

The token’s positioning within its Bollinger Bands structure shows ETHFI trading in the lower portion of the range, with a %B reading of 0.1877 indicating proximity to the lower band support zone. Daily trading volume of $6.26 million on Binance spot markets suggests moderate institutional interest despite the downward pressure.

Key Technical Indicators

The RSI reading of 34.02 places ETHFI in neutral territory but approaching oversold conditions, which could signal potential for short-term bounce if support holds. The MACD configuration shows continued bearish momentum with the histogram at -0.0562, suggesting selling pressure remains intact but may be moderating.

Stochastic indicators at 53.50 (%K) and 53.72 (%D) indicate the token is neither oversold nor overbought, providing limited directional bias from momentum oscillators. The daily ATR of $0.18 reflects current volatility levels and suggests range-bound trading in the near term.

Breakout/Breakdown Scenarios

A break below $1.03 support could trigger accelerated selling toward the $0.95-$1.00 zone, representing a significant technical breakdown. Conversely, a reclaim of the 200-day moving average at $1.09 would shift near-term sentiment and target the $1.14 resistance level where the 7-day moving average resides.

ETHFI Correlation Analysis

Bitcoin’s weakness has contributed to ETHFI’s decline, with the liquid staking token following the broader cryptocurrency market’s risk-off sentiment. The correlation remains strong as institutional flows continue to move in tandem across digital assets.

Traditional markets have shown mixed signals, but cryptocurrency assets continue to trade independently of equity market movements in the current session. ETHFI’s performance aligns with other liquid staking derivatives, which have underperformed compared to layer-1 tokens recently.

Risk Management

Conservative traders should consider stop-losses below $1.02 to limit downside exposure. Position sizing should account for the current ATR of $0.18, suggesting potential for 15-20% daily moves in either direction during volatile sessions.

Image source: Shutterstock

Key takeaways:

Rising demand for put options and miner BTC deposits highlights growing caution among traders despite price resilience near $108,000.
Analysts at Bitwise argue that deep drops in market sentiment often precede rebounds, framing the correction as a “contrarian buying window”.

Bitcoin (BTC) fell to $107,600 on Thursday, prompting traders to question whether Friday’s flash crash signaled the end of the bull run that peaked at an all-time high on Oct. 6. A warning signal in Bitcoin’s options market has put traders on edge, especially amid rising miner outflows, testing the strength of the $108,000 support level.

Bitcoin 30-day options delta skew at Derbit (put-call). Source: laevitas.ch

The Bitcoin options delta skew climbed above 10%, showing that professional traders are paying a premium for put (sell) options, a sign typical of bearish sentiment. Under neutral conditions, this indicator usually ranges between -6% and +6%. More importantly, the skew has worsened since Friday, suggesting that traders are growing more doubtful about Bitcoin’s bullish momentum.

US President Donald Trump’s confirmation that the trade war with China remains ongoing has also weighed on market sentiment. Trump has threatened to further restrict trade with China following its suspension of US soybean purchases, according to Yahoo Finance. Another factor adding pressure is the uncertainty surrounding US economic data amid the ongoing government shutdown.

*Bitcoin options volumes put-to-call at Deribit. Source: laevitas.ch*

Demand for downside protection strategies on Deribit surged on Thursday as trading volumes for put options exceeded call options by 50%, a sign of mounting market stress. The indicator climbed to its highest level in over 30 days. Cryptocurrency traders are typically optimistic, so a neutral reading for the put-to-call ratio tends to sit around -20%, favoring call options.

Bitcoin derivatives merely reflect the worsening US macroeconomics

Bitcoin wasn’t the only market affected by investors’ shift in sentiment, as seen in gold’s new all-time high on Thursday. Demand for short-term US government bonds also spiked, even as two Federal Reserve Governors signaled further interest rate cuts in October — a move that typically reduces the appeal of fixed-income investments.

*US 2-year Treasury yield. Source:* *TradingView*

Yields on the US two-year Treasury dropped to their lowest level in more than three years, showing that investors are willing to accept smaller returns in exchange for the security of government-backed assets. Meanwhile, gold climbed to $4,300, up 23% since September, pushing the value of central banks’ gold reserves above their holdings of US Treasurys, according to Reuters.

Despite positive developments in the tech sector, including chipmaker TSMC’s (TSM) upgraded 2025 outlook and strong quarterly results from Bank of America and Morgan Stanley, the S&P 500 fell 0.9% on Thursday. The Dow Jones US Select Regional Banks Index slid 4.4% after two financial firms reported losses in the private-credit market, according to the Financial Times.

Related: SEC chair: US is 10 years behind on crypto, fixing this is ‘job one’

Movements from Bitcoin miner-linked addresses have also raised concern. Data from CryptoQuant shows that miners deposited 51,000 BTC (worth over $5.5 billion) on exchanges over the past seven days, the largest outflow since July. The analysis noted that such behavior often precedes price weakness, as miners have historically been among Bitcoin’s largest holders.

While the warning from Bitcoin’s options market points to fear of further correction, Bitwise analysts said that extreme drops in sentiment have often “marked favorable entry points,” adding that “the recent correction was driven largely by external factors.” Bitwise head of research André Dragosch added that Friday’s liquidation event has set the stage for a “contrarian buying window.”

Further downside for Bitcoin remains possible, but the surge in demand for put options should not necessarily be seen as a sign of sustained bearish momentum, as external factors have simply made traders more risk-averse.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

ETHFI Tests 200-Day Moving Average Support as Liquid Staking Token Faces Momentum Shift

Quick Take

Market Events Driving Ether.Fi Price Movement

ETHFI Technical Analysis: Testing Key Support Confluence

Price Action Context

Key Technical Indicators

Critical Price Levels for Ether.Fi Traders

Immediate Levels (24-48 hours)

Breakout/Breakdown Scenarios

ETHFI Correlation Analysis

Trading Outlook: Ether.Fi Near-Term Prospects

Bullish Case

Bearish Case

Risk Management

Bitcoin Options Shift As Traders Watch BTC Turn Bearish

Bitcoin derivatives merely reflect the worsening US macroeconomics