For many, Ethereum is now a cause for concern as its price movement, despite recent recovery efforts, is generally not in the right direction. In fact, the world’s largest altcoins are not only losing investors, but also losing a lot of money in the market.
For example, the market capitalization of ETH has dropped 21.6% in the last 21 days. Despite some gains over the past 24 hours, does the broader picture indicate a possible drop in the price of ETH in the future?
Ethereum going down again?
While the coin did not manage to consistently hold its position on the charts, at least it saved itself from falling further before it started to rally. According to a popular analyst Rect CapitalSo, for example, altcoin fell through its wedge structure. This wedging structure has allowed the coin to consolidate within the trendlines, and for the most part it is expected to break above them and start rallying.
“ETH is emerging from its blue wedge structure.
The price is now putting pressure on the orange support zone, from which #ETH has bounced twice in the last couple of months.
There may be a rebound here, but it may be weaker than before. “
As highlighted earlier, the rebound did indeed take the form of some recovery in the larger market on the price charts. But whether he will be weak is another question.
Since that didn’t work, it’s best to think in a shallow and less complex way. Analyst Michael Van de Poppe just mentioned very important levels for the altcoin. If Ethereum returns to its previous levels again, critical support can be expected to remain in the $ 1,500 to $ 1,700 range. However, the critical offender will maintain its position at $ 2,400.
Even the metrics agree
Despite rallying over the past 24 hours, Ethereum’s major charts still indicated how bearish these incidents were. First of all, the MVRV ratio highlighted that ETH was in a less profitable zone or zone of minimum profit at the time of publication. In fact, it was at a level unseen in more than 9 months.
You can also observe the Spent Output Profit Ratio (SOPR), with the indicator highlighting the value of the coin at which it was sold versus the value at which it was created. For the same reason, ETH is now being sold at a loss. On the 30-day SMA, the ETH market appeared to be very bearish and added the possibility of a larger drop on the charts if the altcoin was unable to maintain its recovery.
However, despite all the bearish signals, there was still some hope, as evidenced by the NUPL chart. Even though the indicator was in the yellow zone, it still had bullish and positive signals as it reflected the market’s optimistic sentiment.
Where the coin will go is an obvious mystery, but any investment must be made very carefully as the market is unable to move sideways.