Ethereum (ETH) has experienced a modest 3.2% decline over the last week, leading to speculations about the potential for a deeper market correction amidst ongoing economic challenges. Conversely, new blockchain insights indicate that this downturn could be approaching its conclusion.
Ethereum’s Downturn Showing Signs of Reversal
In a recent communication on X, blockchain analyst CryptoWhale emphasized that the current Ethereum decline is beginning to lose traction. The analyst presented a chart illustrating the latest trends, highlighting that short-term ETH sellers seem to be “running out of steam.”
This chart reflects the trading activity pressure differential for Ethereum, which assesses the balance between buying and selling actions on various exchanges, employing order book data or blockchain flows. A favorable pressure differential indicates stronger buying sentiment, whereas an unfavorable differential points to increased selling activities.
The gradual decrease in the number of intense red spikes – indicative of sell pressure – on the right side of the chart suggests that the pressure to sell is reducing. Concurrently, the growing green spikes signal a strengthened interest in purchasing over selling.
Additionally, analyst Titan of Blockchain remarked on a potential bullish pattern forming in the daily Ethereum chart, suggesting that the asset’s next significant price movement could be influenced by the upcoming Federal Reserve meeting.
Ethereum trader Merlijn The Trader shared a promising perspective, highlighting that the Ethereum Moving Average Convergence Divergence (MACD) metric has turned positive on the weekly chart, while maintaining its existing pattern.
For those unfamiliar, the MACD is a widely-used momentum indicator designed to identify shifts in the strength and direction of price trends. It achieves this by comparing two moving averages of the token’s price, indicating potential buy or sell signals whenever these lines intersect.
Ethereum Needs to Hold This Key Support Level
In another post on X, esteemed analyst Ali Martinez spotlighted a pivotal support zone for Ethereum that must hold to prevent an extensive price drop. Referring to the Market Value to Realized Value (MVRV) bands, Martinez cautioned that if ETH descends below $1,800, it could plummet to approximately $1,500.
Moreover, recent trading data demonstrates a significant decrease in Ethereum trading volumes across major platforms. Trading activity metrics currently indicate that ETH volume has reached lows not seen in several years.
Notwithstanding, the Puell Multiple suggests there remains potential for price appreciation for Ethereum. As of now, ETH is priced at $1,900, reflecting a 0.5% increase within the last 24 hours.
