Ethereum, the second largest cryptocurrency by market capitalization, is facing another period of turbulence as it experiences a new influx of coins to exchange addresses.
According to recent data, this surge in Ethereum inflows is reminiscent of a similar event that coincided with the cryptocurrency’s value falling below $2,080.
The question on the minds of traders and enthusiasts alike is whether this latest wave of influx will lead to a similar result?
Ethereum Inflow Analysis
Over the past week, Ethereum was down 3.51%, with bulls barely managing to keep prices above the USD 2,000 support zone. However, when Bitcoin was rejected at $30,000, Ethereum also saw a drop in value.
Despite this bearish trend, the cryptocurrency managed to post a 1% gain in the last 24 hours and is currently priced at $1,886 according to CoinMarketCap.
The 30-day MVRV (Market Value to Realized Value) ratio for Ethereum, which measures the average profit or loss of all addresses that acquired ETH in the past month, retreated from a three-month high in mid-April to negative values at the time of writing.
This decrease was due to intense sales pressure in the past two weeks, in which the value of ETH fell from $2,125 to $1,820.
The MVRV readings indicated that short-term ETH holders were losing and that the average age of the coins has not changed much over the past week, but has risen a bit in recent days.
Based on last week’s stock market inflow data, it appears there is a high probability that further selling will occur soon.
Source: Santiment
Ethereum could see further losses; Feeling bearish
Given the current market sentiment and technical indicators, it is possible that Ethereum will take further losses in the coming days. If the bears continue to dominate the market, the cryptocurrency could break the USD 1800 support level and move towards the USD 1600 range.
However, if the bulls manage to gain momentum, Ethereum could potentially see a price move towards $2,000. The 4-hour chart shows a resistance level at $1,890 which, if broken, could lead to a possible price increase.
ETH total market cap currently pegged at $226 billion on the daily chart at TradingView.com
It is important to note that cryptocurrency markets are notoriously volatile and unpredictable, and unexpected events can always occur that affect the price of Ethereum. As always, traders should exercise caution and carefully analyze market trends before making any investment decisions.
While Ethereum has suffered losses over the past week, there is still potential for a price increase if the bulls gain momentum. However, current market sentiment and technical indicators suggest that further losses may lie ahead.
It remains to be seen how the market will develop in the coming days and weeks, and traders should remain vigilant and adapt to changing conditions.
– Featured image from TipRanks
