The post ETH Run to $2,600 Risks Collapse appeared on BitcoinEthereumNews.com.

Ethereum’s (ETH) price has surpassed $2,500 for the first time since October 1. However, despite the market’s rising optimism, this upward movement may not be as smooth as it seems.  In this analysis, BeInCrypto highlights several on-chain metrics that suggest a significant portion of ETH’s gains could be stifled. Ethereum Is Not Yet Free from Problems Ethereum’s price increase represents a 6% hike in the last 30 days. Within the last 24 hours, the cryptocurrency’s volume has increased by 90%, indicating rising investor interest in Ethereum. Despite this, data from IntoTheBlock shows that Ethereum’s Coins Holding Time has decreased by 56% in the last seven days. Coins Holding Time shows the amount of time investors have held a cryptocurrency without selling it. Typically, longer holding times correlate with higher chances of price increases, while shorter holding times often signal potential price drops. In Ethereum’s case, the recent decline in holding time suggests that, despite the recent price rise, ETH holders are still selling. Read more: How To Buy Ethereum (ETH) With a Credit Card: Complete Guide Ethereum Coins Holding Time. Source: IntoTheBlock If sustained, the cryptocurrency’s value might drop in the short term. The Network Value to Transaction (NVT) ratio is another metric supporting a drawdown. A high NVT ratio suggests that market capitalization is higher than the value transacted on the network. A low NVT ratio, on the other hand, indicates that transaction volume is outpacing the market cap growth. While the former is a bearish sign, the latter is a bullish one.  According to Glassnode, Ethereum’s NVT ratio has been rising for the last few days, suggesting that ETH’s price could be overvalued relative to the current market condition. Ethereum NVT Ratio. Source: Glassnode ETH Price Prediction: Likely Drop Below $2,400 A look at the ETH/USD daily chart shows…

---

Filed under: News - @ October 14, 2024 9:16 pm