CoinDesk Report:
After experiencing weeks of volatility, the price of Ethereum (ETH) has recently rebounded, breaking the $3,000 threshold. This increase has triggered cautious optimism among investors, although market conditions indicate the importance of remaining vigilant. Key indicators such as whale addresses and MVRV ratio decline are worth noting.
Why are whale addresses decreasing?
The recent price trend of Ethereum has been unstable. A significant bearish indicator is the decrease in whale addresses, which are addresses holding large amounts of ETH. In the past five days, addresses holding over $100,000 worth of ETH have decreased by 14%, from 150,000 to 130,000. This decrease indicates a weakening confidence among major holders and suggests a diminished confidence in the short-term outlook for Ethereum. Visit NEWSLINKER for the latest tech news.
Importantly, this reduction not only involves holding or selling ETH but also exiting the network entirely. This trend underscores the necessity of taking cautious actions in the current market conditions. Loss of confidence by large investors could impact the overall market trend and lead to more price fluctuations.
What is the role of Fibonacci retracements and MVRV ratio?
The 23.6% Fibonacci retracement level is at $3,011, which is crucial for Ethereum’s price trajectory. If Ethereum maintains this level as support, it could facilitate a stable uptrend and create a favorable environment for accumulation, potentially increasing future profit opportunities for investors.
Additionally, the Market Value to Realized Value (MVRV) ratio for Ethereum is also an important indicator. The current 30-day MVRV ratio is -10.4%, indicating that Ethereum is undervalued and providing a good accumulation opportunity. Historical data shows that significant price adjustments occur within the -5% to -13% MVRV range, offering potential buying opportunities at these levels.
Key takeaways for investors:
– Monitor the decrease in whale addresses as this may indicate broader market sentiment.
– Consider the potential support level at $3,011, the 23.6% Fibonacci retracement, and view the current -10.4% MVRV ratio as an indicator of undervaluation and accumulation opportunity.
In conclusion, while the rebound of Ethereum’s price above $3,000 is hopeful, there are imminent risks. If the price falls below this level, it could quickly drop to $2,800, leading to a consolidation phase and challenging the current bullish prospects. Investors should proceed with caution and closely monitor key indicators and market trends.
Follow our news on Telegram, Twitter (X), and Coinmarketcap. Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile, thus carrying risks, and should conduct their own research.
