Key Points
- Ethereum’s price has dropped almost 10% in a week, with less investor interest indicated by key metrics.
- Technical analysis suggests a possible short-term recovery, despite the current bearish pressure.
Ethereum’s price has experienced a significant downturn, with a nearly 10% drop over the past week. This has brought the price to a 24-hour low of $2,868.
This decline is more pronounced compared to Bitcoin, which has managed to breach notable price marks despite the current market conditions.
Factors Influencing Ethereum’s Market Performance
The downturn in Ethereum’s market performance is attributed to several factors. One of these is substantial whale activities that have introduced significant volatility and selling pressure into the market.
Further exacerbating Ethereum’s market woes are the declining metrics of network activity. Data from Glassnode shows that Ethereum’s active addresses have decreased from a peak of 564,868 in late April to 468,548.
This decline in active addresses is mirrored by a drop in the number of new addresses—from 196,629 earlier in the month to below 85,000 on the 11th of May. These metrics suggest a decreasing investor interest in Ethereum during this period.
Technical Analysis of Ethereum’s Price
From a technical analysis perspective, Ethereum has broken significant support structures on the daily chart, indicating bearish pressure. However, the 4-hour chart revealed liquidity near the $3,200 region that needed to be taken before any major downward continuation.
This suggests that Ethereum could experience a short-term rise above the $3,000 mark before potentially dropping to around the $2,800 level, setting the stage for a potential rally thereafter.
Interestingly, the deposit of Ethereum into the exchange coincides with the reactivation of two Bitcoin wallets that had been dormant for nearly 11 years. Each of these wallets, holding 500 BTC, liquidated their entire holdings, which was yet another spot of bad news for investors.
