Ethereum Price Risks: Will ETH Drop Below $3,000 Amid Rising Sell-Off Pressure?
The post Ethereum Price Risks: Will ETH Drop Below $3,000 Amid Rising Sell-Off Pressure? appeared on BitcoinEthereumNews.com.
The dominance of sellers has influenced Ethereum’s price trajectory, hinting at a potential dip below the $3,000 mark. The daily drop in Realized Cap signals potential loss of market confidence if the present trend continues. Ethereum’s spot Cumulative Volume Delta (CVD) shows a negative move, reflecting a significant shift in trading momentum. Ethereum’s price is on a precarious edge as recent metrics signal a potential decline below the $3,000 mark, reflecting selling pressure and market sentiment shifts. Sellers Dominating Ethereum’s Trading Activity The market data reveals a troubling trend for Ethereum (ETH) as sellers seem to have taken the upper hand. Currently, ETH is struggling to maintain its price above $3,000, having slipped below this level twice recently. The Cumulative Volume Delta (CVD), which monitors the buying and selling volume, has moved into the negative territory on the ETH/USD daily chart. A negative CVD indicates that the selling volume outweighs the buying volume, putting downward pressure on the price. Buyers’ Attempt to Hold Ground Amidst Increasing Selling Pressure When CVD values are positive, it indicates buyers outnumber sellers, suggesting potential short-term price appreciation. In contrast, the negative CVD we see now suggests a predominance of sellers, making it hard for the price to rise. As of the latest updates, Ethereum was priced at $3,012 after failing to sustain a move above $3,100, facing strong resistance from bearish sentiment. Other market indicators suggest that recovery might not be quick, as several metrics point towards sustained selling pressure. Introduction of Mean Coin Age Data Another critical metric to consider is the Mean Coin Age (MCA), which reflects the average age of coins on the blockchain. An increasing MCA suggests that older coins are being moved, which could indicate a potential sell-off. Conversely, a decreasing MCA would imply that coin holders are opting…
Filed under: News - @ July 7, 2024 11:14 pm