The broader market correction on Thursday, July 8, has resulted in a severe bloodbath in the altcoin space. The world’s second-largest crypto Ethereum (ETH) is down nearly 10% in the last 24-hours moving closer to its crucial support of $2000 levels.
The ETH price bounced more than 20% from its $1750 lows in June end. Two days back before the recent correction, the ETH price made a momentary spike above $2400 levels. A bearish signal on the technical charts is that the ETH price is forming a rising wedge. With the overall trend staying bearish, the ETH price will break down the rising wedge and move towards $1750 levels.
Interestingly, the recent chart pattern and the rising wedge have striking similarities with the 2017.18 ETH price movement. Thus, the bearish bias will continue to remain and we can expect deeper correction going ahead.
On the other hand, the long-term holders for Ethereum on a 356 day time period continue to stay in profit. So far we have not yet hit the undervalued zone. Thus, there’s every possibility that these players can resolve to further profit booking leading to more pain.
ETH Exchange Supply Declining
While ETH has been hinting at bearish momentum ahead, some of the key on-chain metrics show that there’s not much reason to panic. A large number of ETH coins continue to move away from the exchanges. As per data from Santiment, the first of July saw the largest-ever ETH exchange outflow since April 2017.
A large number of ETH coins have been flowing to the Ethereum 2.0 deposit contracts. The total number of staked ETH coins with Ethereum 2.0 has crossed more than 6 million worth a massive $13 billion.
After the all-time high of May, the Ethereum active addresses dropped by 40% since then. The active addresses have once again picked up momentum to the north. However, it will be too early to confirm any bullish trend based on historical charts.
Many analysts have been betting on the upcoming London hardfork scheduled to go live next month. The EIP-1559 implementation which reduced the ETH gas fee is said to be the gamechanger. However, the ETH price movement surrounding it has been much speculative suggesting “buy the rumour, sell the news”.
The post Is There More Pain Ahead for Ethereum (ETH) Holders? Key On-Chain Metrics To Watch Out appeared first on Coingape.