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- Ethereum liquidations increased as the price reached $2,270.
- Most market and on-chain indicators looked bearish.
Ethereum (ETH) has been seeing a huge surge in network activity recently. This occurred at a time when altcoin liquidation levels were increasing.
Could Ethereum’s high network activity help paint the coin’s charts green?
User activity on Ethereum is high.
Users have shown tremendous interest in Ethereum recently, as evidenced by the surge in network activity.
AMBCrypto also examined data from Glassnode and found that active addresses on Ethereum have gained upward momentum since December 16th.
The metric for the number of new addresses on the blockchain also showed a similar upward trend.
Source: Glassnode
However, while the blockchain’s network activity increased, the token sold off. AMBCrypto looked at data from Hyblock Capital ETHThe liquidation amount increased to close to $2,270.
A price correction occurred as the token price fell due to increased liquidations.
Source: Hiblock Capital
According to CoinMarketCap, ETH has fallen nearly 3% over the past seven days. At the time of this writing, it was trading at $2,193.67, with a market capitalization of over $259 billion.
A bearish signal was the increased trading volume of ETH, which justified the decline in the price of the token.
Ethereum has problems that need to be solved
like ETHThe price of fell, and several on-chain indicators showed a bearish trend for the token. For example, AMBCrypto found high selling pressure on Ethereum, evidenced by the rise in Exchange Reserve at press time.
Source: CryptoQuant
Moreover, investors in the US and South Korea appeared to be selling their holdings. This was clearly revealed in CryptoQuant’s report. dataIt turns out that both Coinbase Premium and Korea Premium are red.
The negative situation also continued on the derivatives side of the market. In particular, ETH’s Taker Buy Sell Ratio is displayed in red, meaning that selling sentiment is dominant in the futures market.
Source: CryptoQuant
In addition to the indicator, several market indicators such as MACD were bearish against the king of altcoins at the time of press. The Money Flow Index (MFI) also fell south, heading below the neutral line.
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Another bearish indicator is ETHChaikin Money Flow (CMF) fell slightly.
Considering the aforementioned dataset, it seems likely that investors will have to wait longer to witness a bullish rally in ETH despite the increase in network activity.
Source: TradingView