ethereum price retreated on Boxing Day as gains made during the Santa Claus rally were erased.
The ethereum token (eth) fell to $3,340, a drop of more than 5.6% from its highest level this week. This pullback came as a sea of red spread across the cryptocurrency industry, with the market capitalization of all coins falling to $3.29 million.
ethereum plunged in a low volume environment as most traders stayed away from the market over the Christmas holidays. Data from CoinGecko shows that 24-hour volume was $17.5 billion, up from $24 billion the previous day. It had its lowest volume in more than a month.
ethereum futures open interest also continued to fall, hitting a low of $26 billion, down from this month's high of $28 billion. The drop in open interest is a sign of falling demand among futures traders.
Still, there are some positive signs in the ethereum market. Data by DeFi Call shows that the total value locked in its DeFi ecosystem has increased by 5.50% in the last 30 days. Solana and Tron's TVL has fallen more than 3% in that period.
The proportion of active addresses has continued to increase in recent months. It has risen from October's low of 0.37% to 0.57%, its highest level since August. This important data point analyzes the ratio of active addresses and balances with balances. Total active ethereum addresses have increased to over 927,000.
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More technical data shows that ethereum's market value to realized value score increased by 2.35% in the last 24 hours to 1.64. This important number analyzes whether a crypto asset is overvalued or undervalued. An MVRVA figure less than 3.8 indicates that an asset is relatively undervalued.
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ethereum Price Analysis
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The daily chart shows that eth price formed a small double top pattern at $4,095 and then made a strong bearish breakout. It then recovered and retested the pattern's neckline at $3,500, its swing low on December 3.
eth formed a small doji candlestick pattern on Christmas Day. A doji is made up of a small body and long, upper shadows and is usually a bearish sign. ethereum has also formed a bearish flag chart pattern.
Therefore, the coin is likely to have a bearish breakout and reach the psychological point of $3,000, down 10% from the current level.
Disclosure: This article does not represent investment advice. The content and materials appearing on this page are for educational purposes only.
