The cryptocurrency markets are currently experiencing a period of stability, with Bitcoin’s price struggling to overcome bearish pressure and maintain its position above important support levels. Despite this, Bitcoin’s market dominance continues to rise, indicating that it remains a popular choice among traders. As a result, other cryptocurrencies, particularly Ethereum, are trading in a downward pattern, leading to concerns of further price declines. However, this current dip may present a profitable opportunity for traders, as the MVRV ratio is at a weekly low, suggesting the potential for a rebound.
Ethereum has recently triggered a buying opportunity as the crypto market has seen a surge in prices, with the price of ETH breaking above the $63,000 mark. As a result, the price of Ethereum has also gained momentum and is approaching the $3,000 mark. According to data from Coinglass, the market has witnessed approximately $8.6 million worth of liquidations, with nearly $1.5 million of that coming from ETH short-liquidations.
Looking beyond the headlines surrounding Ethereum, on-chain data indicates a positive shift in investor sentiment, which has likely contributed to the current bullish trend in ETH prices. IntoTheBlock’s Open Interest ratio, which measures the value of capital invested in ETH derivatives contracts compared to the spot market capitalization, has seen a significant increase. A rising open interest ratio typically signals bullish sentiment. The current ratio stands at 4.21%, indicating a notable rise. Historical data shows that ETH price often struggles to stay above $3,000 when the open interest ratio falls below 0.2%. The last time the ratio declined to this threshold was on April 14. However, the current surge in the ratio suggests strong trading interest.
Additionally, the MVRV ratio for Ethereum has been declining. Data from IntoTheBlock reveals that Ethereum’s MVRV is currently at 1.55, down from its peak value of 1.74. This suggests that the realized value is approaching its current value. This presents an opportunity for holders to accumulate more Ethereum as the previously overheated sentiment cools down.
When assessing the future of ETH price, it is apparent that it has been struggling to surpass the immediate resistance at $3,000, with bears firmly defending this level. However, ETH price managed to stay above $2,900 despite increasing selling pressure. As of now, ETH price is trading at $2,966, showing a 1.3% surge in the last 24 hours.
A minor positive for the bulls is their ability to keep the price close to $3,000, which increases the likelihood of a breakout above this level. If this is achieved, the ETH/USDT pair could test the next resistance at $3,210. On the downside, key support levels are represented by the Fibonacci levels. A break and close below $2,800 could indicate a consolidation phase between $2,800 and $2,500 for the next few days.
Although both moving averages are trending downwards, the RSI level on the 4-hour chart is surging above the midline, indicating that the bulls have an advantage. Buyers will aim to push the price above $3,200 to strengthen their position. If successful, this move could propel the price towards $3,600.
However, the bears will attempt to pull the price below the 20-EMA, which would indicate strong resistance from the bears and potentially drive the pair down to the 50-SMA.
Tags: ETH
