Ethereum Faces Potential Price Correction Amid Bearish Signals
Recent on-chain metrics for Ethereum (ETH) indicate a possible short-term price correction following a 35% surge in the past month. Despite reaching the $4,000 mark, concerns arise about overbought conditions, suggesting a looming pullback.
Ethereum’s On-Chain Metrics Signal Bearish Trend
Key indicators such as the price-Daily Active Addresses (DAA) divergence point towards a negative sentiment. This metric reflects the correlation between price movement and user engagement. A significant drop in Ethereum’s price DAA divergence to -64.17% indicates declining network activity, potentially leading to a price decline.
Additionally, analysis of Coins’ Holding Time reveals a decrease since December 6, signaling selling pressure on ETH. This trend, if sustained, might push the price below $3,900.
Potential Price Scenarios for ETH
On the 4-hour chart, Ethereum faced resistance at $4,073, causing a pullback to $3,985. The Cumulative Volume Delta (CVD) turning negative implies increasing selling pressure. If this trend persists, ETH’s price could drop to $3,788, with a more bearish scenario targeting $3,572. However, a reversal in trend could propel the cryptocurrency towards $4,500.
Investors should monitor these on-chain metrics closely to navigate potential price fluctuations in the Ethereum market.
The information in the article is for informational purposes only. It does not constitute any investment advice. The author and CryptoBlockNews.com are not responsible for your profits or losses arising from your investments. Investment is ultimately based on many foundations such as knowledge, accumulation, experience, research and personal decisions.
