Journalist
Posted:
- ETH is down more than 3% in the past seven days.
- Market indicators and benchmarks remained bearish.
The price of Ethereum [ETH] has continued to plummet, which could have raised concerns among investors. However, according to the latest data, this price action could bring better things as the price of the token could skyrocket soon.
Ethereum is still under bear pressure
According to CoinMarketCapthe price of ETH has fallen by more than 3% in the last seven days. Moreover, its value has fallen by more than 1% in the last 24 hours.
At the time of writing, it was trading at $2,170.21 with a market cap of over $260 billion.
The price drop also created bearish sentiment around the token, as evidenced by the plummeting Weighted Sentiment. Nevertheless, it remained a topic of discussion in the crypto space, evidenced by its high social volume.
Source: Santiment
But in a moment of good news, Mags, a popular crypto trader and analyst, recently shared a chart suggesting just that ETH‘s price could break out in January 2024.
According to the tweet, ETH’s price tested a long-term support level, which has historically always been followed by price increases.
Every time #Ethereum has tested the long-term trendline support but sparked a massive bull rally.
Surprisingly, every retest in the past took place in the month of January! If history repeats itself, we can expect a similar rebound in January 2024. pic.twitter.com/gnj0f0KpLQ
— Mags (@thescalpingpro) December 17, 2023
To put it into perspective, when the ETH/BTC price first reached that support level in 2017, their prices skyrocketed. A similar trend was also seen in years like 2020 and 2021.
Investors may suffer losses in the short term
While this looked good, things were not in Ethereum’s favor in the short term. AMBCrypto’s look at CryptoQuant’s data revealed that both US and Korean investors were unwilling to buy ETH, reflecting bearish sentiment in the market.
Source: CryptoQuant
The king of cryptos’ MVRV ratio has fallen sharply over the past week, which is a typical bearish signal. Moreover, Futures investors continued to buy ETHwhich increases the chance of a continuation of the trend.
However, whales’ confidence in ETH remained high as prime addresses rose last week.
Source: Santiment
AMBCrypto reported that whales raised 100,000 ETH in the past week, which was worth over $230 million at the time. Whales generally tend to collect coins at a lower price and sell them when pumped.
AMBCrypto’s look at ETH’s daily chart revealed that ETHThe price could fall further in the coming days.
Read Ethereums [ETH] Price prediction 2023-24
Ethereum’s MACD showed a bearish crossover. Both the Relative Strength Index (RSI) and the Money Flow Index (MFI) recorded a decline, indicating further southward price movement.
Taking into account all the above-mentioned statistics and data sets, investors must remain patient to enjoy the profits from Ethereum.
Source: TradingView