What Ethereum’s latest correction means for its price prediction
- A key indicator seemed to suggest that ETH might fall to $2,150 before a bull run
- While Ethereum’s social metrics dropped, a few market indicators were bearish
Ethereum’s [ETH] price recently fell victim to a price correction like the rest of the crypto-market. Ahead of the said episode, a key ETH indicator flashed a similar outcome. Not only that, but AMBCrypto has also reported how top players in the crypto-space lost some faith in ETH as they started to sell their holdings.
Ethereum’s price is dropping
After a comfortable rally, the king of altcoins’ price registered a decline in the short-term. According to CoinMarketCap, ETH was down by nearly 5% in the last 24 hours alone. At the time of writing, ETH was trading at $2,239.24 with a market capitalization of over $269 billion.
Unfortunately, ETH’s trading volume increased while its price dropped, which is generally perceived as a bearish signal. In fact, Ali, a popular crypto-analyst, rightfully pointed out yet another bearish metric for Ethereum.
If this signal is confirmed, it might set up a prime buying opportunity with #ETH potentially retracing to $2,150. This could be a key moment before a potential rally toward $3,500. pic.twitter.com/hozCr7CNQZ
— Ali (@ali_charts) December 10, 2023
According to the analyst, the TD Sequential has flashed a sell signal on Ethereum’s 3-day chart.
For starters, the TD Sequential is a tool designed to identify the exact time of trend exhaustion and price reversal. Ali mentioned that if this signal is confirmed, it might set up a prime buying opportunity, with ETH potentially retracing to $2,150. Considering the ongoing price trend, the possibility of ETH falling to $2,150 seems to be high.
What to expect from ETH
To better understand what ETH’s future might look like, AMBCrypto checked the token’s on-chain metrics. Our analysis found that selling pressure on the token was high as its exchange reserve was increasing, as per CryptoQuant’s data.
Additionally, both ETH’s Korea Premium and Funds Premium were red, meaning Korean investors and institutional investors have been selling their holdings.
Not only retail investors, but as reported previously by AMBCrypto, whales are also selling ETH. To be precise, a whale made a significant deposit of 3,700 ETH (equivalent to $8.72 million) to Binance recently.
Here, it is interesting to note that while the token’s price dropped sharply, its social volume also declined slightly. Negative sentiment around the token skyrocketed too, as is evidenced by the dip in its weighted sentiment.
Read Ethereum’s [ETH] Price Prediction 2023–24
AMBCrypto then had a look at ETH’s daily chart to see the viability of the token’s price plummeting further.
Ethereum’s MACD projected the possibility of a bearish crossover, which can push the token’s price down to the $2,150-mark in the near term. On the contrary, the Chaikin Money Flow (CMF) registered an uptick – An optimistic sign.