Key Points
- Ethereum’s [ETH] recent downtrend could be halted by insights from data of holders in/out of the money.
- Two network metrics indicate increased selling pressure behind ETH in recent weeks.
Ethereum [ETH] bulls faced a challenge after failing to maintain the $3.6k demand zone earlier this month.
This area, which had served as resistance in March and the first half of April, was breached and became a support zone in late May.
Ethereum ETF Hype and Bitcoin Pressure
There was a growing hype around the Ethereum ETF for July. However, with Bitcoin [BTC] likely to face selling pressure from miners and Mt. Gox, along with a general lack of demand, ETH bulls might face a tough battle.
A price drop toward the next support zone is expected, but it’s unclear where the correction will likely halt.
Major Support and Resistance Zones
AMBCrypto noted that the in/out of money data from IntoTheBlock showed a significant amount of ETH was purchased in the $2970-$3171 zone, equating to 2.28 million Ethereum.
As the price nears this level, the number of holders at the money would rise, making this region difficult to break down.
Likewise, any price bounce would struggle to surpass $3.5k, as many of the holders would be near breakeven at that price and may want to sell due to fearful conditions.
Therefore, the $3.1k and $3.5k levels are crucial in the coming weeks.
Active Address Count and Network Health
The daily active addresses have increased in June, despite falling prices. This increase is a positive sign for network usage. However, other metrics indicate a bearish bias.
The mean coin age has significantly decreased over the past month, indicating token movement across the network and distribution.
The MVRV ratio also dropped below zero, highlighting holders at a loss. These factors strongly suggest further bearishness. For a hint at price recovery, the MCA needs to start trending higher.
