Ethereum sees further declines as MVRV signals bearish momentum! The expected ETH price decline is as follows:
Ethereum has seen significant declines in recent hours after Bitcoin struggled to maintain momentum within the $38K-$40K range. This situation has reduced Ethereum’s market dominance as it struggles to attract buyers to match its level of support. Current market action suggests further declines as important on-chain indicators show selling opportunities. As a result, there is a bearish threat to the ETH price as it could record another downtrend in the coming hours.
Profitable Address Finds Sales Opportunities
Recently, Ethereum (ETH) has witnessed a notable price decline from its all-time high of $2,400 and is currently targeting the $2,100 level. This change resulted in the closure of long positions. According to Coinglass, Ethereum has over $77 million in total liquidations, with bullish traders contributing about $70 million, while bearish traders contributed about $7 million. This trend has established stronger resistance near $2,400 due to continued bearish pressure.
However, with key on-chain indicators suggesting a correction, there is potential for a much larger decline in the price of ETH. According to data from IntoTheBlock, the Market Value to Realized Value (MVRV) ratio, an important indicator, represents a significant selling opportunity for Ethereum, especially after its recent decline to $2,100.
The current MVRV ratio is 1.49, indicating that Ethereum’s market value has significantly exceeded its realized value, i.e. the last traded value. This gap allows traders to realize profits by selling their Ethereum holdings.
ETH price tends to stabilize around MVRV 1.1, which could mean that further decline in value is possible. 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 it to fall.
What’s next for ETH price?
The bulls’ efforts to push Ethereum past the $2,400 resistance level have encountered resistance, which is evident from the significant decline on the price chart. This led to a sharp decline in the price of Ethereum, falling below its moving average and currently targeting a fall below $2,100. ETH is currently trading at $2,209, down 6.7% from yesterday.
Ethereum price is facing a significant test of $2,100 as it recently fell below the upward support line. But buyers continued to defend the price and it quickly rebounded above $2,200. Holding below this could tighten bearish controls, potentially sending ETH down to the $2,000-$2,100 support area. However, notable accumulation could be expected near that level.
Recent price trends suggest that ETH may fluctuate between $2,100 and $2,400 for quite some time. However, a drop below $2,100 could push the price below the psychological level of $2K. On the other hand, a bounce and close above the EMA20 trendline could push the price up to $2,400 and $2,700.