- Selling pressure on Ethereum has increased in recent days.
- The NVT ratio indicated that Ethereum was overvalued.
Ethereum [ETH] investors struggled as bears continued to dominate the market. In fact, the latest data suggested that it could take even longer for the bulls to regain control.
Let’s take a look at why it seemed likely that ETH bears would further drive down the token’s price.
Ethereum difficult future
CoinMarketCaps facts revealed that Ethereum bears have driven down the token’s price by more than 10% in the past seven days. The bearish trend continued over the past 24 hours, with the value of ETH falling 1.6%.
At the time of writing, Ethereum was trading at $2,486.34 with a market cap of over $299 billion.
According to IntoTheBlock’s facts76.8 million ETH addresses continued to make gains, accounting for 63% of total ETH addresses.
In the meantime, Ali, a popular crypto analyst, posted tweet to draw attention to an interesting development. According to the tweet, the MVRV Momentum indicated that Ethereum was still in a downtrend.
The bad news was that there were no signs of a trend reversal. This clearly suggested that investors could see the king of altcoins fall further in the coming days.
Therefore, AMBCrypto planned to take a closer look at the state of ETH to find out what to expect.
Source:
The possible support levels of ETH
AMBCrypto’s analysis of Glassnode’s data revealed that Ethereum’s NVT ratio registered a huge spike. Whenever the measure rises, it suggests an asset is overvalued, signaling a price correction.
Source: Glassnode
CryptoQuant’s facts also revealed quite a few bearish metrics. Thus, ETH’s foreign exchange reserve increased, increasing selling pressure.
In addition, the total number of coins transferred decreased by -37.28% compared to yesterday. Another bearish measure was active addresses, as they have fallen over the past 24 hours.
Source: CryptoQuant
Since the aforementioned data sets indicated a continued price decline, AMBCrypto checked Ethereum’s daily chart to look for possible support zones. The technical indicator MACD showed a bearish c-crossover. Ethereum’s Chaikin Money Flow (CMF) recorded a decline.
Read Ethereums [ETH] Price prediction 2024–2025
The Relative Strength Index (RSI) also followed a similar downward trajectory, indicating that the chances of a further price decline were high. If that’s true, it won’t be surprising to see Ethereum plummet to $2.28.
A slip below that support level could send ETH down to $1.86 in the coming days or weeks if the bulls don’t make an effort.
Source: TradingView