As the cryptocurrency market crashed last week, the king of altcoins Ethereum [ETH] also suffered a sharp price correction. Many people may have lost confidence in the coin due to the price drop. However, the trend changed in the past few hours as ETH’s daily chart soon turned green.
Ethereum’s high volatility
Data shows that the price of ETH has fallen by more than 12% in just seven days. AMBCrypto’s review of IntoTheBlock data also showed that the average balance of ETH has dropped, which can be attributed to the double-digit drop in the token’s price.
Meanwhile, Lookonchain posted a tweet sharing an interesting development. According to the tweet, several whales started selling ETH as its value dropped. To be precise, three Ethereum whales deposited 28,558 ETH worth more than $82.2 million to Binance. But soon after, the price of ETH saw a trend reversal on the chart.
In fact, the altcoin’s price has risen by nearly 3% in the past 24 hours alone. As of this writing, ETH is trading at $2,967.81 with a market cap of over $356 billion.
However, despite the price increase, its trading volume has dropped by double digits. This suggests that ETH may not be able to maintain its bullish momentum for long.
Will ETH’s bull run continue?
Like volume, some other indicators also appear quite bearish.
For example, despite the increase in ETH’s price, selling pressure on the token remains high. This can be seen from data from CryptoQuant, which also highlights an increase in ETH’s exchange reserves. In short, some investors are choosing to sell.
Nonetheless, other indicators also support the possibility of a continued uptrend.
For example, ETH’s funding rate has been rising, meaning long position traders have been dominant and may be willing to pay short position traders. Its relative strength index (RSI) is also in oversold territory, according to data from CryptoQuant. This could help increase buying pressure in the coming days, leading to higher prices on the charts.
Additionally, AMBCrypto’s analysis of Glassnode data shows that EThereum’s NVT ratio has dropped dramatically. A drop in this metric means that the asset is undervalued, which typically leads to a rise in price.
We then planned to look at ETH’s daily chart to get a better idea of what to expect. We found that ETH’s price hit the lower band of the Bollinger Bands – highlighting the possibility of a rebound.
Read Ethereum [ETH] Price Prediction 2024-25
In addition, its Money Flow Index (MFI) is also about to enter the oversold zone.
However, the Chaikin Money Flow (CMF) looks bearish, with a value of -0.09 at press time.
