Key Points
- Ethereum’s selling pressure has been increasing, indicating a potential price drop.
- Data suggests that Ethereum may be overvalued, with no signs of an imminent trend reversal.
Ethereum Under Pressure
Ethereum [ETH] investors are facing a challenging market climate, with bearish trends dominating.
Recent data suggests that it could take longer for bullish trends to regain control.
Over the past week, the price of Ethereum has been pushed down by more than 10% according to CoinMarketCap data.
In the last 24 hours, the bearish trend continued with a 1.6% dip in Ethereum’s value.
Ethereum’s Troublesome Future
At the time of writing, Ethereum was trading at $2,486.34 with a market capitalization of over $299 billion.
According to data from IntoTheBlock, 76.8 million ETH addresses remained profitable, accounting for 63% of total ETH addresses.
However, a tweet from crypto analyst Ali highlighted that the MVRV Momentum indicates Ethereum is still in a downtrend.
There are no signs of a trend reversal, suggesting that the altcoin king might drop further.
Potential Support Levels for Ethereum
Analysis of Glassnode’s data revealed a significant spike in Ethereum’s NVT ratio, which typically suggests overvaluation and potential price correction.
CryptoQuant’s data also showed several bearish metrics, including an increasing ETH exchange reserve, indicating rising selling pressure.
The total number of coins transferred decreased by -37.28% compared to the previous day, and the number of active addresses also dropped.
Technical indicators such as the MACD and Chaikin Money Flow (CMF) registered a downtick, suggesting a potential further price drop.
If this trend continues, Ethereum could plummet to $2.28, and a slip under that support level could push ETH down to $1.86 in the coming days or weeks.
