Key Points
- Ethereum’s price fell below its 20-day simple moving average, indicating a potential short-term decline.
- Ethereum’s network activity and demand have decreased over the last month.
On the 1st of May, Ethereum (ETH) experienced a brief dip in value, trading at a low of $2852.
This was accompanied by a significant decline in its Futures Open Interest since the 10th of April.
Ethereum’s Short-Term Outlook
Recently, Ethereum’s price dropped below its 20-day simple moving average (SMA), suggesting a potential short-term decline.
This is often interpreted as a sign of sellers dominating the market and a possible continuation of the price decline.
On the 30th of April, Ethereum’s price fell below its 20-day SMA, and by the 1st of May, it had dropped to $2850 due to intensified coin selloffs.
Despite a slight price recovery in the last 24 hours, the bullish pressure remains insufficient for a significant rally.
Technical Analysis and Network Activity
On the 1st of May, Ethereum’s MACD line intersected its signal line in a downtrend, a bearish sign indicating a possible further price decline.
The Aroon Down Line, an indicator of trend strength and potential reversal points, was at 92.86%, suggesting a strong downtrend.
Ethereum’s key momentum indicators, the Relative Strength Index (RSI) and the Money Flow Index (MFI), pointed to a substantial decline in demand for the altcoin.
Network activity data confirmed this decline in demand over the past month.
Data from Santiment revealed a 7% drop in the daily count of addresses involved in at least one Ethereum trade over the last month.
Additionally, the number of new Ethereum addresses has decreased by 10% in the past 30 days.
