On-chain measures suggest a likely reversal in Ethereum’s price trajectory, with forecasts pointing to a potential decline to the $2,000 range, raising concerns. The pessimistic prediction on the indicators obtained from on-chain data has caused investors and cryptocurrency traders to become more cautious.
The basis behind ETH has remained unshaken, meaning that Ethereum’s price recovery from its current deep is imminent. As published by Santiment, the on-chain metrics for altcoins are making neutral moves into the bearish signals.
Historical analysis from February 18, 2021 cites the recovery metric may be positively interrupted since not all users can come up with a $12 fee. A token swap on the Decentralized Exchanges (DEX) was said to cost over $100 in gas fees, hence giving smaller traders no option but to drop the network.
Santiment Release Chart, Explained Sudden Activities by Whales
The demand zone is a stopgap against further falls and is commonly understood as a price range where buying enthusiasm dominates selling pressure. If Ethereum’s price drops below this range, it could lead to bearish moves.
Analysts forecast a downturn that would see Ethereum retest the $2,000 mark if it dips beneath the demand zone. This estimate is predicated on evaluating on-chain measurements, which offer perceptions of supply and demand dynamics within the Ethereum network.
A chart published by Santiment recognized the sudden increase in whales whale activities. It explained that the whale’s transactions work in the same pattern as the increase in the NRPL metric. The profit-taking activities by whales have also increased Ethereum’s selling pressure, hence dropping the prices further.
Experts Predict an Impending Strong Resistance at $2,440
Ethereum’s price may flip if the $2,000 threshold is broken, impacting trading tactics and general market sentiment. Analysis on FXStreet’s Ekta Mourya predicts that ETH will face strong resistance at a $2,440 price level should its price rally.
Chart analysis from the cryptocurrency tracker IntoTheBlock, and published on the FXStreet platform shows that the 903,110 ETH is where the $2,440 and $2,373 curbed up 4.73 million Ethereum.
According to the Network Realized Profit/Loss (NRPL) metric, a tool deployed in tracking accumulated profit by Ethereum investors, asserted that transactions by whales valued at more than $100,000 may resort to Profit-taking.
According to 2021 historical analysis, Ethereum has dipped to $1,660, accompanied by a 9% price recovery in 10 hours. The event had triggered a $280 million liquidations in futures contract, setting the stage for a huge long term advantage.
Profit-taking Activities Increase Ethereum’s Selling Pressure Amid 4% Loss
Bearish on-chain metrics raise concerns about Ethereum’s price trajectory, suggesting it may drop further to $2,000. Data extracted from Sentiment says that the volume of Ethereum dropped between January 10th and 22nd.
The volume declined with the price of ETH. The declining pattern in the volume of Ethereum is in line with the short-term corrections in the assets. ETH lost about 4% last week due to the sudden change in its price. Recall Ethereum reached it’s all-time high at $2,715 this January, correcting $2,372.
As of the time of writing, Ethereum trades at $2,375.69, with a trading volume of $10,273,938,805. Ethereum went down by 3.66% in the past 24 hours as of press time. With a current market capitalization of $285,505,195,145, it still ranks #2 on CoinMarketCap.
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