Ethereum: Despite Meltdown Just Around The Corner, ETH Falls Flat On These Metrics

Ethereum: Despite Meltdown Just Around The Corner, ETH Falls Flat On These Metrics

Ethereum: Despite Meltdown Just Around The Corner, ETH Falls Flat On These Metrics

Since the massive crash in June, Ethereum [ETH], the world’s largest altcoin, gained a steady move north. Over the past two months, ETH has consistently posted higher lows, suggesting an uptrend as the date for the long-awaited Ethereum merger approaches.

However, in a recent turn of events, several cryptocurrencies, including Bitcoin [BTC] and Ethereum, suffered a price drop. At the time of writing, Ethereum was trading at $1,636.11, almost a negative 10% growth in 24 hours, with a market cap of $199,662,199,532.

What’s going on

While the price crashed, several interesting developments occurred in ETH’s on-chain metrics. Data from Glassnode indicated that Ethereum Exchange Outflow Volume (7d MA) just hit a one-month low of $14,564,884.80. This drop indicates a further drop in the price of ETH in the coming days, as a decrease in the output volume on exchanges is generally a bearish sign.

Source: Glassnode

Furthermore, as the output volume decreased, the input volume increased, further establishing the possibility of a price decline. While the price fell, the social dominance of Ethereum rose as the crypto community started talking about the episode on multiple social media platforms, expressing their opinions related to it.

Source: Sentiment

The price drop was also accompanied by a decline in Ethereum’s profit supply as it fell to 49,999,507 from 63,790,230, its three-month high in just a 24-hour span, indicating further losses for traders. investors.

Source: Glassnode

The Market Value Realized Value (MVRV) ratio, which is an indicator of price action, suggests that Ethereum’s dark days are not yet over. According to the chart, the MVRV index was well above the one mark, indicating more price declines in the coming days, as the value below the mark indicates a possible market bottom.

Source: Glassnode

A look at the other side

Although several metrics indicate a possible decline in the value of ETH, the four-hour chart also seemed to paint a gloomy picture. A bearish wedge pattern formed on the chart which resulted in the price of Ethereum falling. As indicated by the Bollinger Bands (BB), the value of ETH was in an area of ​​high volatility, which suggests a contraction in its price in the coming days.

The Relative Strength Index (RSI) noted that the drop in ETH price pushed it into the oversold zone. Therefore, the possibility arises that the price will gain an uptrend, showing a new support at the $16,000 mark.

Source: TradingView

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