Is Ethereum awaiting another price correction?
- ETH’s price declined by more than 2.4% in the last seven days.
- Market indicators and metrics remained bearish on the token.
Over the last week, Ethereum’s [ETH] price witnessed a decline as it once again went under the $1,900 mark. The latest data revealed that things can get even worse if selling pressure continues to rise. Checking the token’s daily chart gave more reasons for concern as the possibility of ETH’s price plummeting further seemed likely.
Read Ethereum’s [ETH] Price Prediction 2023-24
Ethereum’s latest price correction
The king of altcoins managed to cross $1,900 last week, but it couldn’t sustain the pump and soon fell. As per CoinMarketCap, ETH’s price plummeted by more than 2.4% in the last seven days. At the time of writing, it was trading at $1,870.54, with a market capitalization of over $224 billion.
On top of that, Lookonchain’s recent tweet pointed out that Justin Sun sold his ETH holdings. As per the tweet, Justin Sun transferred 23,000 ETH, which was worth more than $43 million, to Poloniex.
Justin Sun transferred 23,000 $ETH ($43M) to #Poloniex ~10 mins ago.
Justin Sun transferred a total of 67,500 $ETH ($126M) to #Poloniex in 7 transactions over the past year.https://t.co/VTN13dGJ1q pic.twitter.com/fYa4bBI8DS
— Lookonchain (@lookonchain) July 8, 2023
Considering this dump, the possibility of a continued sell-off seemed high. However, it did not affect sentiment around Ethereum, as evident from the rise in its weighted sentiment. In fact, Ethereum’s popularity rose as its social volume went up.
Selling pressure on Ethereum is high
Glassnode Alert’s tweet revealed that Ethereum’s exchange outflow recently reached a 1-month low. The metric clearly revealed that investors were not buying the token. This was further proven by CryptoQuant’s data, which pointed out that ETH’s exchange reserve was increasing, meaning that it was under selling pressure. Its net deposits on exchanges were also high compared to the last seven days, suggesting that investors were selling their holdings.
As per Santiment’s chart, Ethereum’s MVRV Ratio and velocity both plummeted last week, which were bearish signals. However, the supply held by top addresses registered a slight uptick in the same period.
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The bears have taken over
ETH’s MACD displayed a bearish crossover, suggesting the sellers were leading the market. The Relative Strength Index (RSI) took a sideways path near the neutral mark, which looked bearish.
Additionally, Ethereum’s Money Flow Index (MFI) went down, further increasing the chances of a price decline in the coming days.