- Ethereum exchange reserves are now at their lowest level in eight years, paving the way for an increase in price.
- The current bearish indicators indicate that there may be more room to decline before the rebound.
Amount of Ethereum [ETH] The amount of cryptocurrency held by exchanges is at its lowest level in 8 years. The launch of Ethereum spot ETFs could cause a massive supply shock and lead to an increase in the price.
Let’s see what data tells us.
Ethereum ETFs causing a stir in the market?
If spot ETFs attract the interest that everyone anticipates, an initial rush to buy Ether might drive up prices quickly. This could then be followed by some corrections in the price as the market adjusts.
Ethereum’s current price is lower than both the 50 period and the 200 period moving averages. Its trend is downward. This alignment is generally a sign of a downward trend.
The RSI stands at around 43. This is slightly below neutral 50 but still not oversold (below 30%).
The price may continue to decline before it reaches oversold levels, which are often reached just before the next price increase.
At the current Ethereum price, 89% of Ethereum owners are making money. This is an indication of a healthy cryptocurrency market.
There’s an enormous concentration of Ethereum, with 51% held by whales.
The last seven-day period has seen a high volume of trades exceeding $100K. This demonstrates a massive activity by institutional investors. Ether is currently a hot commodity for investors.
MVRV’s recent declines could suggest that Ethereum may be entering a price range where it will become less overvalued. This would align with a possible more sustainable level of pricing or undervaluation.
The cooling down could provide a stable base for the next bull run.
You can read more about it here Ethereum’s [ETH] Price Prediction 2024-25
Ethereum might try to overcome the $3.733 resistance if it can maintain above its recent support of $3.670.
If you breach this level, the price could rise. next The psychological barrier is $3,800.
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Source: ambcrypto.com