Connect with us
Active Currencies 14778
Market Cap $2,557,616,555,646.10
Bitcoin Share 51.24%
24h Market Cap Change $0.70

Ethereum price retraces: What does its prediction say?

2min Read

Ethereum could face increased selling pressure, as shown by these metrics.

Ethereum price retraces: What does its prediction say?

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Ethereum saw a pullback from just above the long-term resistance at $2300.
  • The dip in active addresses pointed to a reduction in demand for ETH in the market.

Ethereum [ETH] noted a decent retracement of its gains earlier in December. While the trend and the market structure remained bullish on the one-day chart, some on-chain metrics outlined that selling pressure was on the rise.

The deflationary nature of Ethereum should inspire confidence in long-term holders. Estimates of shrinking ETH supply do not help in the short-term market sentiment, and a move to $2000 or lower was still a possibility.

Will the $2130 support hold?

Ethereum reaches the 61.8% extension and retraces some gains, should we expect a bounce soon?

Source: ETH/USDT on TradingView

In early November, ETH shot skyward to reach $2130 and began to pull back thereafter. This retracement took nearly three weeks before Ethereum bulls were back in control.

They needed to capture the $2000 level as support and managed to do so and beat the local highs at $2130 afterward.

On the way higher, ETH took some time to consolidate at the $2030 region before the swift push northward. This region was highlighted in cyan. Combined with its proximity to the $2000 mark, it should serve as a strong support zone.

The $2019 level was the recent higher low, and a move beneath it would flip the one-day market structure bearishly. At press time, the RSI floated just above neutral 50 to denote bullish momentum.

The OBV was also in an uptrend, though it saw a dip in recent days.

These metrics signal caution

Ethereum reaches the 61.8% extension and retraces some gains, should we expect a bounce soon?

Source: Santiment

The age-consumed metric saw some notable spikes over the past two weeks. The most recent one arrived on the 10th of December when ETH was trading at $2340.

A couple of days later, the mean coin age, which had previously been in a strong uptrend, cratered. This suggested a lot of ETH had been moved between addresses. Combined with the age consumed, it suggested a spike in selling pressure.

Is your portfolio green? Check out the ETH Profit Calculator

This increased selling saw Ethereum prices fall toward the $2100 mark. Notably, the active addresses count began to falter over the past week. The MVRV ratio also reached a new high.

Holders whose ETH was in profit chose to sell their assets to realize some of these profits. Overall, the metrics suggested that long-term investors had reasons for concern.


Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.