Key Points
- Ethereum is struggling to break past the $3.5k resistance level due to decreased buying pressure.
- On-chain metrics suggest Ethereum may face difficulty in surpassing the $3.6k-$3.7k resistance barrier.
Ethereum has been hovering just below the $3.5k-$3.6k resistance zone, with its momentum slowing down in the past week.
A reported drop in the taker buy-sell ratio below 1 indicates a decrease in buying pressure.
Indicators of Bullish Momentum
The daily RSI points to bullish momentum, but the OBV is nearing the lows of a range from May, which is not a positive sign for the bulls.
In light of these factors, an investigation into whether the on-chain metrics leaned bearishly or bullishly was conducted.
Stalled Momentum and Increased Selling Pressure
Data from the past week showed that 57.98k ETH flowed into exchanges, with 70.11k ETH flowing in over the past month.
This suggests more inflows than outflows, potentially leading to increased selling pressure in the altcoin market.
Furthermore, the in/out of the money graph showed that the $3171-$3276 zone was the strongest demand zone, while the $3.5k and $3.7k resistance levels could challenge the market’s bulls.
The 180-day mean dollar invested age (MDIA) metric has been on the rise since April, indicating a decrease in network activity and stagnant investments.
Despite the price trend, development activity has remained strong, a factor that long-term investors may find favorable.
The daily active addresses and network growth saw a surge on June 22, but both metrics have since declined.
The age-consumed metric has also been quiet over the past week.
These metrics suggest that Ethereum may struggle to surpass the $3.6k-$3.7k resistance.
After a healthy rebound from the liquidity pool at $2.8k, two liquidity clusters at $3.7k and $3.9k lie ahead.
These could attract prices and reverse the trend, just as investors start to anticipate Ethereum breaking the $4k resistance level.
