- Ethereum’s value dropped over 3% within the past 7 days
- Key metrics revealed ETH’s undervaluation, which could indicate a rise in the charts
Ethereum’s [ETH] On 28th June the price trend turned positive, giving hope to investors that they can recover from past losses. Sadly, the bullish price trend was short-lived, and soon thereafter, the coin’s value corrected. The weekly and daily charts of the coin flashed red.
Ethereum rejected
ETH bears reacted to the price increase by pushing the price of the altcoin down more than 3%. The king of the altcoins, ETH, was currently trading at $3.391.51, with a capitalization over $407 billion.
In the past, Ethereum was rejected at the upper limit of the bullish wedge. As per a tweet ZAYK Charts is a prominent crypto analyst. In late May the token price began to consolidate within this pattern. The price of Ethereum could have risen by 30% if the breakout was successful. This would have enabled Ethereum to reach $4k.
Intriguingly, an earlier pattern of this kind had appeared in March. It was only in May that it broke through. It allowed altcoins to rise up the charts and reach $3.89k. The chances of history being repeated are slim, however, because ETH has been rejected.
Why won’t ETH recovery?
AMBCrypto then looked closely at Ethereum’s state in order to check if the pattern of bullishness would continue.
The market sentiment surrounding the King of Altcoins was still bearish. It was evident by its weighted mood dropping after the spike of 28 June. In addition, its network growth dropped slightly. Fewer addresses were used to send the token.
A few metrics, however, were favorable to a breakout.
As an example, the MVRV Ratio has increased over the past couple of days. It can be read as a bullish sign.
AMBCrypto’s analysis of Glassnode data revealed that Ethereum NVT ratio also declined dramatically. A drop in this metric usually means that an asset is undervalued – Implying an incoming price hike.
AMBCrypto checked the Hyblock Capital data for levels of immediate support and opposition.
According to our analysis, ETH would need to reach and surpass the $3.5k mark in order to maintain a bull run as liquidations will increase sharply. A rise in liquidations is often accompanied by price corrections.
Is your portfolio green? Look at the ETH Profit Calculator
If, on the other hand bears are dominant and ETH volatility increases in a downward direction, it could fall as low as $3,060.
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Source: ambcrypto.com