Ethereum Price Stalls, but Metrics Suggest a Rebound Is Near
Leading altcoin Ethereum (ETH) has spent seven consecutive days trading below $3,500, reflecting broader bearish sentiment across the cryptocurrency market. The coin’s value has plummeted 13% since hitting an intraday high of $3,744 on January 6.
However, despite the price drop, key on-chain indicators suggest that Ethereum holders remain optimistic about the altcoin’s near-term prospects.
Ethereum traders remain resilient
One of the indicators is ETH’s expected leverage ratio rises (ELR). According to data from CryptoQuant, the indicator continues to trend upward despite ETH price declines in recent weeks. At press time, ETH’s projected leverage ratio (ELR) is 0.60, having increased 20% over the past month despite a 15% price drop over the same period.
ELR measures the average leverage used by traders when executing trades on cryptocurrency exchanges. It is calculated by dividing an asset’s open interest by that currency’s exchange reserves.
ETH’s rising ELR indicates an increased risk appetite among its traders. This shows that altcoin traders are increasingly willing to take risks despite current price weakness. The continued high leverage suggests traders are confident that ETH’s price is poised to rebound despite recent resistance.
also, ETH foreign exchange reserves ETH has fallen to a two-month low of 19.19 million, and the number of ETH held in exchange wallets has decreased by 2% in the past week. This decrease suggests that market participants are reducing selling pressure and choosing to hold on to their ETH tokens.
It turns out ETH’s recent price drop The impact of the bearish trend in the broader market is greater than the impact of the sharp sell-off in ETH itself.
ETH Price Prediction: Everything Depends on the Wider Market
As of this writing, ETH is trading at $3,226just above the support at $3,186. If broader market sentiment improves and ETH accumulation increases, its price could rise to $3,563.
However, if the market continues to be depressed, ETH may test the support at $3,186. If this level cannot be maintained, the coin’s value could drop to $2,945.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
