Ethereum’s value has shown strong bearish tendencies recently, dropping past key levels in just a week. As Bitcoin struggles with the $26K mark, ETH is on the brink of breaching a vital support level. Additionally, multiple on-chain metrics are now leaning towards bearish signs, with investors growing restless as the number of profitable addresses hits a several-month low.
These Ethereum Metrics Might Trigger Negative Sentiment
Recent on-chain metrics have raised concerns in the altcoin market, suggesting a potential bearish trend for Ethereum in the coming days. Two metrics, in particular, stand out: the Ethereum Percent Addresses in Profit and the Ethereum Number of Addresses Holding 32+ Coins. Both the metrics have witnessed a steady decline recently, suggesting rising negative momentum on the price chart.
According to Glassnode, the Ethereum percent addresses in profit has plummeted to an 8-month low, standing at just 52.302%. This means that 48% of Ethereum holders are currently in loss, a concerning figure given Ethereum’s historical performance. A decline in this percentage can indicate a growing number of investors who bought at higher prices are now facing potential losses. This could lead to reduced confidence among investors, potentially triggering sell-offs and further driving down the price.
Additionally, the number of Ethereum addresses holding 32 or more coins has reached a 10-month low, with only 126,211 addresses meeting this criterion. The significance of the number 32 is tied to Ethereum 2.0 validator’s limit. A decline in the number of these addresses can suggest reduced interest in ETH’s staking activity which can impact the network.
As bulls are liquidating in recent hours heavily, exceeding $2 million in long liquidation, it contributes to a selling sentiment, making a recovery trend more challenging.
What’s Next For ETH Price?
ETH price recently lost momentum as it failed to meet buying demand near the resistance of $1,600. As a result, sellers intensified pressure and ETH price is now steadily declining towards immediate resistance of $1,565, indicating that the bulls might be hesitant to buy. As of writing, ETH price trades at $1,585, declining over 0.3% from yesterday’s rate.
While the declining moving averages favor the sellers, the RSI hints at a potential bullish divergence. The RSI level is currently making a positive move below the midline, suggesting growing buying pressure as ETH bounced from $1,565. This could mean that the selling momentum is declining, raising the chances of a surge above $1,600.
A push by the bulls past the 100-day EMA trend line would suggest aggressive purchases. This move can bring more buyers and send ETH price toward monthly resistance of $1,674. However, if the bears manage to pull and maintain the ETH price below $1,531, we could see a drop to $1,470.