- ETH was up by more than 6% in the last 24 hours.
- The token’s indicators and metrics turned bearish, suggesting a price correction.
Ethereum’s [ETH] price crossed a critical level as its value surpassed the $3,700 mark. Since the token was enjoying a bull rally, AMBCrypto planned to take a look at its metrics to see whether the uptrend would last or whether investors should expect a price correction.
Whales are not backing down
According to CoinMarketCap, ETH’s value shot up by more than 6% in the last 24 hours, allowing it to cross the $3.7k mark. At the time of writing, Ethereum was trading at $3,691.87 with a market capitalization of over $443 billion.
Though the token’s price dropped slightly, whale activity around it remained high. AMBCrypto reported earlier how whale activity around the token went up in the recent past. The trend seemed to have been continuing as its whaler transaction count remained high.
Additionally, its supply held by top addresses also went up last week, meaning that whales were still accumulating the token.
Source: Santiment
Though whale activity around the king of altcoins was high, a few of the metrics hinted at a price correction. An analysis of CryptoQuant’s data revealed that ETH’s net deposits on exchanges were high compared to the 7-day average.
Higher deposits can be interpreted as higher selling pressure. Its Korea premium was also red, meaning that selling sentiment was dominant among Korean investors.
Things looked bearish in the derivatives market as its taker buy/sell ratio turned red, suggesting that futures investors were also selling ETH.
Source: CryptoQuant
What to expect if ETH’s price plummets?
Since a few of the metrics looked bearish, AMBCrypto checked the liquidation heatmap to see the support levels. As per an analysis of Hyblock Capital’s data, ETH has strong support near the $3.3k mark.
Therefore, if the token witnesses a price correction, its price might go down to that level before initiating another bull rally.
Source: Hyblock Capital
Read Ethereum’s [ETH] Price Prediction 2024-25
To check which way ETH might head, we took a look at its daily chart. As per our analysis, the chances of ETH witnessing a price correction seemed high. The token’s Relative Strength Index (RSI) entered the overbought zone.
Additionally, its Chaikin Money Flow (CMF) also registered a downtick, further increasing the chances of a price decline. However, the MACD remained bullish on Ethereum as it displayed a bullish upperhand in the market.
Source: TradingView
