ETHER’s most recent selling has lost the level of support of $ 1,500, and many technical indicators suggest that ETH can witness deeper correction before starting continuous recovery.
According to the data, the price of Ether has fallen to a lower price than the realization price. In other words, it is an onchain indicator that re -calculates the market value of cryptocurrency according to the last price of each coin from the blockchain.
According to the Cryptoquant contributor, Thekriptolik and ETH Price are ETH price trading under this metrics, which historically weakly shows. When the realized price is higher than the site price, it usually acts as a resistance, “most of the holders are suddenly in the loss position,” the analyst said.
The analyst added:
“Realized prices often indicate the surrender stages of losing confidence and starting mass sales.”
Ether Leeum has realized the price of the accumulation address. Source: cryptoquant
In June 2022, Ether’s realization price was lower than the spot price, which fell 51% before the Terra Luna market collapsed 51% of ETH prices. Similar scenarios were witnessed in November 2022, and the metrics fell to lower prices before Ether fell 35% after the FTX collapse.
Similar scenarios are in progress, so the current setting is loosely reflected in the previous stages, and the price of ETH has a deeper risk of modification.
Spot Ethereum ETF flow remains weak
SPOT ETHEREUM ETF continued to weaken on April 8 with net leaks of more than $ 3.3 million. In fact, the investment product has leaked $ 19.1 million for the inflow of $ 13 million over the past two weeks.
Investors’ lack of interest is especially because institutional demand was considered a key part of ether’s appeal, and in May 2024, it played an important role in the benefits of May 2024 as it bet on ETF approval of the US Securities and Exchange Commission.
Spot ether ETF flow table. Source: FARSIDE Investors
This is reflected in all other ether products, and Coin Shine’s report is recorded with $ 37.4 million leaks during the week that flows into the Etherrium Investment Fund and ends on April 4.
ETH Open interest is low and funds are negative.
Another factor in lowering the price of ETHER has been proven by low public interest and negative funding due to lack of passion in the derivative market.
Disclosure Interest (OI) -The total number of future and options contracts in the future is low, indicating a decrease in merchant participation and speculative activities. Currently, it is 48% lower than the maximum of $ 3.33 billion witnessed on January 24, $ 16.7 billion on January 24.
OI signal reduction signals will weaken investor trust or interest, which can deteriorate prices as the purchase pressure is dry.
ETH open for all exchange. Source: COINGLASS
This problem is a negative funding rate in Ether’s permanent future market, which is less than 0%, indicating that weak feelings dominate the market.
relevant: Ether Leeum Whale sells ETH after 900 days and loses the maximum profit of $ 27 million.
When the fee changes to negative numbers, shorts (bets on prices) pay for a long time to open their position, which suggests the dominance of weakness.
ETH funding rate on all exchanges. Source: Glass Node
Competition layer -1 block chain surpasses Ether Leeum network activities.
Ether Lee’s high gas fees offer a layer -1 block chain competition, which focuses on high scalability that can occupy market share in space. Some of the activities have moved to Ethereum Layer -2 solutions, but some users and developers choose other top layers -1 alternatives such as BNB chains, solana, avalanche and tron.
As a result, Ether Leeum’s network activity growth has fallen behind competitors’ network activities.
The highest block chain is ranked 24 hours dapps volume and USD. Source: DAPPRADAR
Ether Lee’s unique active wallet (UAW) -This solves the relationship with the application (DAPP) distributed on the platform. It has decreased by more than 33% in the last 30 days, compared to 16% reduction in Solana and 16% of TRON over the last 30 days.
Similarly, the total number of transactions deployed on the Etherrium network decreased by 40.5% during the same period, while the transactions of BNB chains, solana and avalanche decreased 16%, 30% and 23%, respectively. TRON and FANTOM transactions increased by 23% and 16%.
There is no sign that the factor that measures weight at the price of ethers, such as reducing network activities and low demand for SPOT ETF products, will soon be reversed.
This does not guarantee that the price of Ether will remain extended, but the technology setting suggests that ETH’s price can reach $ 1,000.
This article does not include investment advice or recommendation. All investment and trading measures include risks, and the reader must do his own research when making a decision.