Ethereum’s value has shown strong bearish trends lately, falling past major levels in just a week. While Bitcoin struggles with the $26,000 mark, ETH is on the verge of breaking a vital support level. Additionally, several on-chain metrics are now trending toward bearish signals, with investors growing restless as the number of profitable addresses hits multi-month lows.
These Ethereum statistics may cause negative sentiment
Recent on-chain statistics have raised concerns in the altcoin market, indicating a potential bearish trend for Ethereum in the coming days. Two metrics in particular stand out: the Ethereum percentage of addresses in profit and the Ethereum number of addresses with more than 32 coins. Both metrics have witnessed a steady decline lately, indicating increasing negative momentum on the price chart.
According to Glassnode, Ethereum percentage gains have fallen to an eight-month low of just 52.302%. This means that 48% of Ethereum holders are currently experiencing losses, a worrying figure considering Ethereum’s historical performance. A decline in this rate could indicate that a growing number of investors who bought at higher prices are now facing potential losses. This could lead to reduced confidence among investors, potentially triggering a sell-off and driving the price down further.
Furthermore, the number of Ethereum addresses with 32 or more coins has reached a 10-month low, with only 126,211 addresses meeting this criterion. The meaning of the number 32 is linked to the limit of the Ethereum 2.0 validator. A decrease in the number of these addresses could indicate a decline in interest in ETH’s staking activities, which could impact the network.
As the bulls have been liquidating heavily in recent hours, with over $2 million worth of extended liquidations, this is adding to selling sentiment, making a recovery trend more challenging.
What’s next for the ETH price?
ETH price recently lost momentum as it failed to meet the buying demand near the USD 1,600 resistance. As a result, the sellers turned up the pressure and the ETH price is now steadily falling towards immediate resistance at $1,565, indicating that the bulls may be hesitant to buy. At the time of writing, ETH price is trading at $1,585, down more than 0.3% from yesterday’s price.
While the declining moving averages favor the sellers, the RSI signals a potential bullish divergence. The RSI level is currently making a positive move below the midline, indicating that buying pressure is increasing as ETH rebounds from $1,565. This could mean that selling momentum is slowing, increasing the likelihood of a rise above $1,600.
A push by the bulls beyond the 100-day EMA trendline would suggest aggressive buying. This move could bring in more buyers and send ETH price towards a monthly resistance at $1,674. However, if the bears manage to hold and hold the ETH price below $1,531, we could see a drop to $1,470.