For many, Ethereum is a cause for concern right now as, despite recent recovery efforts, its price action has by and large not gone in the right direction. In fact, the world’s largest altcoin is not only losing investors, but also losing a lot of money from the market.

For example, the market capitalization of ETH has dropped 21.6% in the past 21 days. Does the overall picture show a possible collapse of the ETH price in the future, despite some increases in the last 24 hours?

Ethereum is falling again?

While the coin failed to hold its position on the charts consistently, it at least saved itself from falling much further before gains kicked in Rect capital, for example, the altcoin fell through its wedge structure. This wedging structure had allowed the coin to consolidate within the trend lines and is expected to break above it and start a rally for the most part.

“The ETH is collapsing from its blue wedge structure.
Price is now putting pressure on the orange support area from which #ETH has rallied twice in the past few months.
A rebound could happen here, but it could be weaker than before. “

As mentioned earlier, there was a rebound in the form of a slight rebound in the larger market on the price charts. Whether it gets weak, however, is a question for another time.

ETH Critical Support and Breaker Level | Source: Michael Van de Poppe

Since that didn’t work out, it’s best to think small and less complicated. Analyst Michael Van de Poppe simply mentioned the very important values ​​for the altcoin. If Ethereum falls back to its previous levels, the critical support can be expected to remain in the $ 1500-1700 range. However, the Critical Breaker will maintain its position at $ 2,400.

Even metrics match

Despite its gains over the past 24 hours, major charts for Ethereum still showed how bearish these cases were. First of all, the MVRV ratio underscored that ETH was in the less profitable zone or the minimally profitable zone at the time of going to press. In fact, it was at a level not seen in over 9 months.

Ethereum MVRV ratio | Source: Glassnode – AMBCrypto

The Spent Output Profit Ratio (SOPR) can also be observed, with the indicator highlighting the value of the coin it was sold for compared to the value of its creation. Accordingly, ETH is now being sold at a loss. On the 30-day SMA, the ETH market appeared very bearish, increasing the possibility of a bigger drop on the charts if the altcoin fails to sustain its rally.

Ethereum SOPR | Source: Glassnode – AMBCrypto

However, despite all the bearish evidence, there was still some hope, as the NUPL chart shows. Even though the indicator was in the yellow zone, it still had bullish and positive signals as it represented bullish market sentiment.

Ethereum NUPL | Source: Glassnode – AMBCrypto

Where the coin will go from here is an obvious mystery, but any investment must be made very carefully as the market is unable to move sideways.

LEAVE A REPLY

Please enter your comment!
Please enter your name here