The cryptocurrency markets are currently experiencing a period of stability, with Bitcoin facing challenges in overcoming bearish pressures and maintaining its position above key support levels. Despite this, Bitcoin’s market dominance is increasing, indicating that it continues to attract significant interest from traders. As a result, other altcoins, particularly Ethereum, are trading in a descending pattern, raising concerns of further price declines. However, this current dip may present a profitable opportunity for traders, as the MVRV ratio records a weekly low, building up momentum for a potential rebound.
Ethereum has recently triggered a buying opportunity as the crypto market surged, with the price breaking above the $63,000 mark. As a result, the price of ETH has also gained traction and is approaching $3,000. According to data from Coinglass, the market witnessed around $8.6 million worth of liquidations, with nearly $1.5 million of those liquidations being in ETH.
Looking beyond the headlines, on-chain data indicates a positive shift in investor sentiment towards Ethereum. This change in sentiment has likely contributed to the current bullish trend in ETH prices. The Open Interest ratio from IntoTheBlock, which measures the value of capital invested in ETH derivatives contracts against the spot market capitalization, has surged, signaling bullish sentiment. The current open interest ratio stands at 4.21%, a significant increase. Historical data suggests that ETH price often struggles to stay above $3,000 when the open interest ratio falls below 0.2%. The recent surge in the ratio may indicate robust trading interest.
Furthermore, the MVRV ratio for Ethereum has been declining. Data from IntoTheBlock shows that Ethereum’s MVRV is currently at 1.55, down from its peak value of 1.74. This suggests that the realized value of Ethereum is approaching its market value, presenting a profitable opportunity for holders to accumulate more as the overheated sentiment cools down.
In terms of price action, ETH has been striving to surpass the immediate resistance at $3,000, but bears are firmly defending this level. The price briefly dropped below $2,900 due to increasing selling pressure, but buyers successfully defended the price. As of now, ETH is trading at $2,966, showing a 1.3% surge in the last 24 hours.
A positive sign for the bulls is their ability to keep the price close to $3,000, increasing the likelihood of a breakout above this level. If this breakout is achieved, the ETH/USDT pair could test the next resistance at $3,210. On the downside, key support levels are located at the Fib levels. A break and close below $2,800 could indicate a consolidation phase between $2,800 and $2,500 for a few days.
While both moving averages are trending downwards, the RSI level on the 4-hour chart is surging above the midline, indicating an advantage for the bulls. Buyers will aim to push the price above $3,200 to strengthen their position. If successful, the price could skyrocket towards $3,600.
However, bears will try to push the price below the 20-EMA, indicating strong resistance and potentially driving the pair down to the 50-SMA.
Tags: ETH
