Key Points
- Ethereum’s price fell by 24% in a week, but signs of recovery have been noted.
- Despite high selling pressure, the NVT ratio drop indicates a potential price rebound.
Despite a significant price drop of 24% within a week, Ethereum has shown signs of potential recovery.
Examining Ethereum’s Performance
Data from CoinMarketCap revealed that Ethereum’s price dropped by more than 24% in the past week. At the time of writing, Ethereum was trading at $2,514.29, with a market capitalization of over $302 billion.
A notable development was reported by Lookonchain, a popular X handle. According to their tweet, a wallet belonging to LonglingCapital transferred 20,000 ETH, valued at over $50.3 million, to another wallet. This wallet had been dormant for nearly two years.
Future Predictions for Ethereum
Analysis of data from Glassnode indicated that Ethereum’s NVT ratio had dropped sharply. This drop suggests that the asset is undervalued, indicating a high chance of a price increase.
Additional data analysis from Santiment revealed that Ethereum’s supply on exchanges had increased over the past week, indicating high selling pressure. However, the supply of Ethereum held by top addresses was rising, indicating that whales were buying Ethereum.
Technical analysis of Ethereum’s daily chart showed a bearish advantage in the market. The Relative Strength Index (RSI) and Money Flow Index (MI) were in the oversold zone, suggesting a high chance of Ethereum recovering from its losses. Furthermore, the Chaikin Money Flow (CMF) indicated a potential increase in Ethereum’s price.
Analysis of data from Hyblock capital suggested that if Ethereum turns bullish, it could soon reclaim the $3.3k mark. However, if the bearish trend continues, Ethereum’s price could drop to $2k.
