Ethereum price set to drop 5% as CME reports trading volume decline on Monday

• Ethereum price is on the back foot on Monday morning as China lockdowns are rattling markets.
• ETH sees prices declining as ETH futures are nearing their lowest traded volume for this month.
• Expect a test at $1,073 and the risk of a new low being printed for November.

Ethereum (ETH) price is taking another dump as traders are backing away from the cryptocurrency as volumes drop rapidly. The Chicago Mercantile Exchange (CME) reported that traded futures contracts in ETH were falling sharply to the lowest levels seen since October. With fading interest from investors, expect to see a possible leg lower until finally the discount is big enough for traders to scoop up the price action by the end of this week. 

ETH is not yet at a ‘Black Friday’ level that attracts traders

Ethereum price is seeing its traded volume quickly decline, CME reported on Monday morning at the start of a new trading week. Volumes in futures contracts printed a new low for November and are even flirting with the lower numbers of October. Futures, mostly traded by institutions and more experienced traders, show that interest is fading, and big whales are probably holding out for better entry points.

ETH is currently printing over 2% of losses at the European trading session, with possibly more to come. Based on the trading calendar for this week, it makes sense as Monday and Tuesday are very quiet on data, meaning that this risk-off sentiment can continue with ETH nearing $1,073 – the low of November. With Thanksgiving and Black Friday on Thursday and Friday this week, all US data is concentrated on Wednesday, where some dovish comments could come from the Fed minutes and see ETH pop higher and test $1,200 to the upside.

ETH/USD daily chart

A repetitive pattern this year in trading is that each week often sees sentiment flip, where a lower Monday often sees a higher close on Friday, or at least losses are contained. This pattern could be repeating itself, certainly with the holidays in the US where people will be spending a lot, not only on retail, but also on cryptocurrencies. Expect to see volume pick up and trigger a strong rally that pierces above $1,243 – the low of February 1, 2021 – a 10% of gain.