Ethereum has seen a significant drop in recent hours as Bitcoin struggles to maintain momentum within the $38,000 to $40,000 range. This situation made it difficult for Ethereum to attract buyers near support levels, reducing its market dominance. Currently, market trends suggest further decline as key on-chain indicators indicate a selling opportunity. As a result, a bearish threat exists for ETH price as it may record further declines in the coming hours.
Profitable addresses are looking for sales opportunities
Recently, the price of Ethereum (ETH) has fallen noticeably from its peak of $2,400 and is currently targeting the $2,100 level. This change caused a wave of long position closings. According to Coinglass, Ethereum faces a total of over $77 million in liquidations, with bullish traders contributing about $70 million to liquidations, compared to about $7 million by bearish traders. This trend has established stronger resistance near the $2,400 level due to continued bearish pressure.
However, with key on-chain indicators pointing to a correction, the possibility of an even bigger fall in ETH price is looming. According to data from IntoTheBlock, a key metric, the Market Value to Realized Value (MVRV) ratio, points to a significant sell-off opportunity for Ethereum, especially with the recent decline towards $2,100.
Currently, the MVRV ratio is 1.49, suggesting that Ethereum’s market value is significantly higher than its realized value, or its value at the time of its last transaction. This gap could lead traders to try to sell their Ethereum holdings for a profit.
The price of ETH tends to stabilize around MVRV 1.1, which may indicate that the value of ETH may fall further. Meanwhile, the long/short ratio is showing signs of activity, trading at 1.1993, with 54.5% of positions expecting the price to rise and 45.5% expecting the price to fall.
What’s next for ETH price?
The bulls’ efforts to push Ethereum above the $2,400 resistance level were met with resistance, as evidenced by the significant drop in the price chart. This caused the price of Ethereum to plummet, falling below the moving average and now aiming for a drop below $2,100. ETH is currently trading at $2,209, down 6.7% from yesterday’s rate.
Ethereum price is facing a major test at $2,100 as it recently fell below the rising support line. However, buyers continued to defend the price, which quickly caused a rebound above $2,200. A break below this could strengthen bearish control and pull ETH down to the $2,000-$2,100 support area. However, significant accumulation may be expected around that level.
Recent price movements suggest that ETH could fluctuate between $2,100 and $2,400 for quite some time. However, below $2,100, the price could fall below the psychological level of $2,000. On the other hand, if it rebounds and closes above the EMA20 trendline, the price could head towards $2,400 and then towards $2,700.
