- Selling pressure on Ethereum has been increasing over the past few days.
- The NVT ratio indicates that Ethereum is overvalued.
Ethereum (ETH) Investors have had a tough time as bears continue to dominate the market. In fact, recent data suggests that it may take longer for bulls to regain control.
Let’s take a look at why the ETH downtrend is likely to push the token price lower even further.
Ethereum’s troubled future
CoinMarketCap’s data Ethereum bears have revealed that the token’s price has dropped by more than 10% over the past seven days. The bearish trend continued over the past 24 hours, with Ethereum’s value down 1.6%.
At the time of writing, Ethereum was trading at $2,486.34 and had a market cap of over $299 billion.
According to IntoTheBlock data76.8 million ETH addresses were in profit, accounting for 63% of all ETH addresses.
Meanwhile, Ali, a popular cryptocurrency analyst, said: tweet Highlighting an interesting development, the tweet states that MVRV momentum indicates that Ethereum is still in a downtrend.
The bad news is that there were no signs of a trend reversal, clearly indicating that investors could witness further declines in the altcoin king in the coming days.
Therefore, AMBCrypto planned to take a closer look at the state of ETH and see what will happen.
Source: X
Possible support levels for ETH
AMBCrypto analyzed data from Glassnode and found that Ethereum’s NVT ratio has been increasing at a massive rate. Whenever the metric increases, it means the asset is overvalued and is likely to be in for a price correction.
Source: Glassnode
CryptoQuant’s data It also revealed quite a few bearish indicators, for example, the exchange holdings of ETH have increased, which means selling pressure is increasing.
In addition, the total number of coins transferred has decreased by -37.28% compared to yesterday. Another bearish indicator is the number of active addresses, which has decreased over the last 24 hours.
Source: CryptoQuant
Since the aforementioned data set suggested a sustained price decline, AMBCrypto checked the daily chart of Ethereum to find possible support zones. The technical indicator MACD showed a bearish c crossover. Ethereum’s Chaikin Money Flow (CMF) was in a downtrend.
read Ethereum (ETH) Price Prediction 2024~2025
The Relative Strength Index (RSI) has also followed a similar downward path, suggesting that further price declines are likely. If this is true, it would not be surprising to see Ethereum crash to $2.28.
If the uptrend is not broken, a break below this support level could see ETH drop to $1.86 in the coming days or weeks.
Source: TradingView