Ethereum Price Warning: Potential Plunge to $1800 on the Horizon
Ethereum Crash Warning: Potential Drop to $1800 Looms
Recent indicators point to potential trouble ahead for Ethereum, with forecasts suggesting a possible decline back to $1.8k. Selling pressure on Ethereum has been mounting, with the NVT ratio signaling an overvalued status for the cryptocurrency. Investors in Ethereum have been grappling with bearish dominance in the market, with data indicating a prolonged struggle for bullish momentum.
The latest data shows Ethereum experiencing a more than 10% price drop over the past week, with a further 1.6% dip in the last 24 hours alone. Currently trading at $2,486.34, Ethereum’s market capitalization stands at over $299 billion. Despite this, the number of profitable ETH addresses remains high at 76.8 million, representing 63% of all addresses.
Crypto analyst Ali highlighted a concerning trend with the MVRV Momentum suggesting Ethereum is still on a downward trajectory, with no immediate signs of a reversal in sight. This scenario implies a potential further decline for the leading altcoin in the near future.
Analyzing Ethereum’s daily chart reveals several bearish signals, including a MACD bearish crossover and a downtick in the Chaikin Money Flow (CMF). The Relative Strength Index (RSI) also indicates a downward trend, hinting at a possible drop to $2.28. Should Ethereum breach this support level, a further decline to $1.86 could be expected unless bullish momentum intervenes.
Glassnode’s data on Ethereum’s NVT ratio further supports the narrative of an overvalued asset, potentially paving the way for a corrective price action. Additionally, CryptoQuant’s metrics show an increase in ETH’s exchange reserve, signaling growing selling pressure, along with a decrease in the number of coins transferred and active addresses.
In conclusion, Ethereum faces a challenging period ahead, with multiple indicators pointing towards a potential price decline. Investors and traders are advised to closely monitor the market dynamics and key support levels to navigate the current volatile environment effectively.
