On October 1, ETH’s MVRV ratio briefly moved into positive territory before investors decided to take gains, causing it to swiftly decline.
Disclaimer: The material provided is just the writer’s opinion and does not represent financial, investing, trading, or other sorts of advice.
Ethereum performed quite well in the last part of September, indicating optimism.
On-chain indicators contradicted the notion that a rise towards $1500 may be the next given the recent losses.
After hitting $1750, ETH bulls experience a setback,After hitting $1750, ETH bulls experience a setback
Within a week, Ethereum [ETH] surged 12% as bulls drove a move higher, from $1597 to $1751. Similar to Bitcoin [BTC], ETH’s values were driven lower by negative pressure that peaked on October 2.Hours before the severe rejection, on October 2, AMBCrypto published a price analysis for Ethereum in which it noted that the 12-hour chart had turned bullishly at that point.
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The report pointed out that volume indications suggested there may be more rises towards $1900, but it also mentioned that trade volume and Open Interest had started to decline, indicating that pessimistic sentiment might be gaining traction.
Although the $1660 mark was crucial for the bulls to capture, the war was not won there, according to the Ethereum daily chart. On the one-day chart from June 14 (red box), the bearish breaker block remained unbroken.
In addition, the price ranged (orange) from $1745 to $1531, with $1640 serving as the midpoint. For the most part of September, the mid-range level provided support, enhancing the range’s legitimacy. As a result, the decline to $1640 in the last hours before the publication of this article suggested that a collapse below $1530–$1550 may be coming.
The Relative Strength Index (RSI) increased to 68 on October 1st during the short rise, but it has since dropped to 45. This implied that the bullish momentum was losing ground.
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Furthermore, since July, there has been a noticeable downward trend in the On-Balance Volume (OBV). Therefore, a bullish breakout over $1700–$1750 would remain improbable unless this trend changes.
On October 1, the Market Value to Realised Value (MVRV) ratio briefly moved into positive territory before investors decided to take gains, causing it to swiftly decline. Since September 12th, the dormant circulation has not shown any discernible spikes; hence, it is unlikely that long-term investors have engaged in any large waves of selling.
After hitting $1750, ETH bulls experience a setback,After hitting $1750, ETH bulls experience a setback,After hitting $1750, ETH bulls experience a setback