Tuesday, July 23, 2024

Bearish On-Chain Signals: Ethereum Price May Tumble to $2,000.

On Monday, Ethereum traded at $2,372. The altcoin is now in a critical demand area. Ethereum is expected to experience a decline to $2,000 if its price falls below the demand zone.

As observed on Santiment, the altcoin’s on-chain metrics are flashing neutral to bearish indications.

Since Ethereum is in a demand zone, changes in its price could influence the trend.

IntoTheBlock, a crypto intelligence tracker, reports that the price of Ethereum is currently in the demand range of $2,368 to $2,373. The chart below shows that there isn’t a substantial obstacle in the path; therefore, a dip below this level might see the price of Ethereum drop to the area between $2,010 and $2,082.

However, if the price of ETH rises, it will encounter resistance at $2,440. 4.73 million ETH were collected by 903,110 ETH addresses in the range of $2,373 to $2,440.

It might be inferred that large wallet investors are probably profit-taking when the Network Realized Profit/Loss (NRPL) measure, which tracks the gains realized by Ethereum holders, is paired with the whale transactions valued at $100,000 and greater.

The Santiment figure illustrates that the peaks in whale transactions align with the NRPL metric’s profit-taking peaks. Large pocketbook investors’ profit-taking usually puts more selling pressure on the asset and lowers prices.

Another important indicator of an asset’s on-chain activity is volume. Santiment data shows that between January 10 and January 22, ETH volume decreased. Along with the reduction in ETH price, volume has also decreased. Declining volume and activity support the idea that there will be a short-term asset correction.

Over the previous week, the price of ether fell by almost 4%. As of this writing, the price of ETH has corrected to $2,372 from its January 12 peak of $2,715.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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