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Ethereum: These mixed signals may leave ETH investors in a state of fluster 

2min Read

After a long wait, ETH’s price action gave hope to investors. However, things did not look quite as promising for ETH in the derivatives market as its perpetual FTX open interest declined. Furthermore, most of the on-chain metrics hinted towards a trend reversal soon. Nonetheless, a few market indicators provided some relief to investors as they suggested a continued price hike in the coming days.

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Ethereum’s [ETH] post-Merge road to recovery didn’t go as per the expectations of many. The king of altcoins struggled to climb the price ladder for many weeks and several other metrics also turned against ETH. For instance, Coinalyze’s data revealed that ETH’s Perpetual FTX open interest declined considerably over the last month. 

Not only FTX, but a similar trend was also seen on Kraken as open interest in perpetual futures contracts recently reached a 22-month low. These developments indicated that ETH was not receiving much interest and attention from the derivatives market. 

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Here’s AMBCrypto’s Price Prediction for Ethereum [ETH] for 2023-24

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Interestingly, after a long wait, ETH’s price was pumping as it registered nearly 25% weekly gains, thanks to the current bullish crypto market. At the time of writing, Ethereum was trading at $1,629.23 with a market capitalization of more than $199.4 billion. However, a look at ETH’s on-chain metrics might have made investors cross their fingers, as most of them suggested an upcoming trend reversal. 

Red signal ahead 

CryptoQuant’s data revealed that Ethereum’s Relative Strength Index (RSI) was in an overbought position. This suggested a possible downward movement for ETH’s price in the coming days. Moreover, ETH’s exchange reserves continued to rise, indicating higher selling pressure.

Ethereum’s network growth registered a massive downtick over the last week. This was yet another bearish signal. ETH’s volume also took the same path and decreased in the past few days.

Source: Santiment

Bad news came in for Ethereum’s NFT space as well, as it failed to register any growth. Ethereum’s total NFT trade count decreased. This indicated less activity on the network’s NFT space.

Source: Santiment

Some incoming relief  

Interestingly, Ethereum’s daily chart told a completely different story, as most market indicators were in favor of a continued price surge. The Exponential Moving Average (EMA) displayed a bullish crossover. The Moving Average Convergence Divergence (MACD)’s reading also supplemented EMA Ribbon’s findings as it too suggested the bulls’ advantage in the market.

Not only this, but ETH’s Chaikin Money Flow (CMF) registered an uptick, which was a bullish sign. The Bollinger Bands (BB) also indicated that ETH’s price was in a high volatility position, further increasing the chances of a price hike in the days to come. Nonetheless, ETH’s On Balance Volume (OBV) marked a downtick, which might hinder ETH’s path of going up.

Source: TradingView

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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