Fun

3 metrics hint that the Ethereum (ETH) price correction is not over

News Feed - 2024-03-29 01:03:00

Nancy Lubale7 hours ago3 metrics hint that the Ethereum (ETH) price correction is not overEthereum price has had a rocky week and data suggests that more downside could be on the way.1371 Total views3 Total sharesListen to article 0:00Altcoin WatchOwn this piece of crypto historyCollect this article as NFTJoin us on social networksAfter rallying to $4,091 leading into the Dencun upgrade, Ether (ETH) has underperformed over the last month compared to Bitcoin and the broader crypto market, leading traders to doubt whether the altcoin’s downtrend is over.


To put this into context, Bitcoin’s (BTC) price fell by 18% during the same period, while the total cryptocurrency market capitalization dropped by 16%.


A number of market and technical indicators show that ETH may witness a deeper correction before embarking on a sustained recovery.ETH//USD daily chart. Source: TradingViewThe ETH/BTC ratio trended lower in March


Ether is up 8% so far in March but has underperformed Bitcoin as well as other top layer 1 tokens. BTC price has rallied 21% over the last 30 days, while other top-cap layer 1 tokens, such as BNB Chain’s BNB and Solana’s SOL, have rallied 44% and 76%, respectively, over the same timeframe.


The ETH/BTC ratio declined throughout March, reaching its lowest since January.ETH/BTC ratio. Source:TradingView


Currently, there are a handful of reasons for ETH’s underperformance in March, including Bitcoin-specific factors in 2024. U.S. spot Bitcoin ETFs have largely been a success since their approval by the Securities and Exchange Commission on Jan. 11. In addition, the upcoming Bitcoin supply halving, which has historically preceded a parabolic uptrend in crypto prices, has added to BTC’s tailwinds.


Moreover, there has been a decline in Ethereum’s network activity (in specific metrics) over the last week. Data from Glassnode shows that daily active addresses on Ethereum have dropped from 622,963 addresses on March 20 to 546,484 on March 26.Number of active addresses on Ethereum. Source: Glassnode


Although Ethereum remains the network to beat in the layer 1 sector, Solana has recently captured its market share in this segment in terms of on-chain activity and stablecoin transfer volume.


Related:Munchables hacker returns $62.8M Ether without ransomEther faces stiff resistance on the upside


Ether’s latest attempt at recovery was rejected by supply congestion from the $3,600 level. This is an indication that this area presents a stubborn barrier in ETH’s recovery path.


The significance of this resistance zone is reinforced by data from IntoTheBlock. Its In/Out of the Money Around Price (IOMAP) model reveals that this area is within the $3,534 and $3,639 price range, where roughly 1.17 million addresses previously bought approximately 4.97 million ETH.Ether: IOMAP chart. Source: IntoTheBlock


If this resistance level sees a high volume of activity from the sellers in the short term, Ether’s price is expected to sink deeper.Ether’s bear flag points to a continuation of the downtrend


After reaching a 27-month high of $4,093 on March 12, ETH price pulled back as bears booked profits and the wider crypto market corrected. The price has since recovered to the current price of $3,511


Despite the recovery, a bear flag can be seen on the daily chart, which hints at the continuation of the downtrend.


Ether bulls are counting on support from the flag’s lower boundary at $3,497. A daily candlestick close below this level would signal a bearish breakout from the chart formation, projecting a decline to $3,060. Such a move would represent a 26% descent from the current price.ETH/USD daily chart. Source:TradingView


The relative strength index’s (RSI) position around 50 also indicated that the bears were selling on the latest rally to $3,600.


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Cryptocurrencies# Altcoin# Ethereum# Markets# Altcoin Watch# Ether Price# Ethereum PriceAdd reactionAdd reaction

News Feed

Dutch Financial Regulator Vows Strict Treatment of Crypto Business Under MiCA
Dutch Financial Regulator Vows Strict Treatment of Crypto Business Under MiCA The financial regulatory body of the Netherlands intends to maintain tough attitude towards the Dutch
Sberbank to Conduct First Digital Asset Transaction on Own Platform
Sberbank to Conduct First Digital Asset Transaction on Own Platform Russia’s largest bank, Sberbank, is going to carry out the first transfer of digital assets on its own de
The Mercedes-AMG Petronas F1 Team Inks Long Term Deal With Crypto Exchange FTX
The Mercedes-AMG Petronas F1 Team Inks Long Term Deal With Crypto Exchange FTX Following a number of partnerships this year, FTX Trading Limited announced on Thursday that the comp
Landmark Steam Ruling Opens Door to 'Used' Digital Games Market
French courts have delivered a landmark ruling against video game retailer Steam that may be the first step towards turning the tide on the heavily-prohibited secondhand marketplace for "used" digital games.
GameFi Project ArchLoot Provides NFT User Builder for Creative Playability
GameFi Project ArchLoot Provides NFT User Builder for Creative Playability press release PRESS RELEASE.Singapore, May 3, 2022 –NFTs have disrupted the gaming industry with th
Biggest Movers: ATOM Falls Towards Multi-Week Low, as GRT Extends Recent Losses
Biggest Movers: ATOM Falls Towards Multi-Week Low, as GRT Extends Recent Losses ATOM fell towards a three-week low on Thursday, as crypto markets were victim to yet another red wav
1inch unveils crypto debit card in partnership with Mastercard and Baanx
Tristan Greene7 hours ago1inch unveils crypto debit card in partnership with Mastercard and BaanxUsers will be able to make cash withdrawals and point-of-sale transactions at supported ATMs and locations.3938 Total views
Ethereum Gas Fees Are Currently 62% Cheaper Than Last Month
Ethereum Gas Fees Are Currently 62% Cheaper Than Last Month Since November 9, 2021, or 46 days ago, transaction fees on the Ethereum network have been cut by more than half the rat
Zhiyuan Sun8 hours agoKuCoin suspends Bitcoin and Litecoin mining pools“We deeply regret any inconvenience this might cause and we remain grateful for your unwavering support and understanding," the exchange wrote
FTX victims will ‘never’ be whole thanks to SBF’s ‘dumpster fire’ — John Ray
Martin Young2 hours agoFTX victims will ‘never’ be whole thanks to SBF’s ‘dumpster fire’ — John RayFTX chief John Ray III wrote a scathing victim impact statement on the exchange’s co-founder, Sam Bankman-F
Arijit Sarkar42 minutes agoTether maintains $3.3B in liquidity cushion: USDT transparency reportThe total assets under Tether stand at $86.1 billion with total liabilities amounting to $82.8 billion — thus confirming a
Dogecoin’s Bullish Push Gains Steam, A Retest To $0.4 Ahead
Este artículo también está disponible en español. Dogecoinis charging ahead as bullish momentum builds, propelling the price closer to the critical $0.4 resistance level.