Ethereum, the second largest cryptocurrency by market capitalization, is facing another bout of turbulence as it experiences a new influx of coins on exchange addresses.
According to recent data, this surge in Ethereum inflows is reminiscent of a similar event that coincided with a drop in the value of the cryptocurrency below the $2,080 mark.
The question on the minds of traders and enthusiasts is: will this latest wave of entries lead to a similar result?
Ethereum Inflow Analysis
Last week, Ethereum saw a 3.51% drop, with the bulls barely managing to hold prices above the $2,000 support zone. However, when Bitcoin was rejected at the $30,000 mark, Ethereum also saw a drop in value.
Despite this downtrend, the cryptocurrency managed to record a 1% gain in the last 24 hours and is currently priced at $1,886 according to CoinMarketCap.
The 30-day MVRV (Market Value to Realized Value) ratio for Ethereum, which measures the average gain or loss of all addresses that purchased ETH in the last month, has retraced from a three-month high in mid-April to negative values. at the time of writing.
This drop was the result of intense selling pressure in the last two weeks, in which the value of ETH decreased from $2,125 to $1,820.
The MVRV values indicated that short-term ETH holders were at a loss and that the average age of the coins has not changed much in the last week, but has risen a bit in the past few days.
Based on the FX inflow data over the past week, it appears there is a high probability of further selling soon.
Source: Santiment
Ethereum could suffer further losses; bearish sentiment
Given the current market sentiment and technical indicators, Ethereum may see further losses in the coming days. If the bears continue to dominate the market, the cryptocurrency could break out of the $1,800 support level and head towards the $1,600 range.
However, if the bulls manage to gain momentum, Ethereum could see a price move towards the $2,000 range. He 4 hour chart shows a resistance level of $1,890 which, if broken, could lead to a potential price rally.
ETH total market cap currently pegged at $226 billion on the daily chart at TradingView.com
It is important to note that cryptocurrency markets are notoriously volatile and unpredictable, and unexpected events can always occur that affect the price of Ethereum. As always, traders must be careful and carefully analyze market trends before making any investment decisions.
While Ethereum has seen losses in the past week, there is still a chance of a price spike if the bulls manage to gain momentum. However, current market sentiment and technical indicators suggest further losses could be in the offing.
It remains to be seen how the market will develop in the coming days and weeks, and traders must remain vigilant and adapt to changing conditions.
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