Ether (Ath) The most recent selling-bands noticed that it loses a significant $ 1,500 support level, and many technical indicators suggest that ETH could see a deep improvement before starting at a continuous recovery.
Data suggests that the price of ether has fallen below the price of its feeling – an onchain metric that reorganize the market price of cryptocurrency based on the price on which each coin last gone to the blockchain.
According to the Cryptoctive contributor, ThriptolicAth Price Trading under this metric, historically a recession sign. The analyst stated that when the price of the realization is above the spot price, it usually acts as resistance and “placed most of the holders in a sudden damage position”.
The analyst said:
“Drops below the price of the feeling often mark the capitulation phase, where investors lose confidence and start selling N Masss.”
Etharium realized the value for the accumulation address. Source: Cryptoctive
In June 2022, the price of Ether feeling fell below the spot price, which was a 51% decline in the ETH price after the Terra Luna Market Crash. A similar landscape was observed in November 2022, when the Ether fell 35% after the Ether FTX collapse fell below the metric price before falling.
Now that a similar landscape is playing out, the current setup dysfuishedly resonates those pre -recession continuity stages in which the ETH price is accompanied by the risk of a deep improvement.
Spot Atherium ETF Flow remains weak
The spot atherium ETF continues to weaken, with more than $ 3.3 million in pure outflow on 8 April. In fact, these investment products have recorded $ 94.1 million in the outflow in the last two weeks, which is $ 13 million in the flow against $ 13 million.
Investors are related to lack of interest, especially since institutional demand was considered an important part of Ether appeal and played a role in the profit earned in May 2024 as investors bet on ETF approval from the US Securities and Exchange Commission.
Spot ether ETF Flow Table. Source: Ferrocide Investor
It is also reflected in all other ether products, with the report of coinshares pointing out It flows into the ethrium investment fund, which aligns with the recession seen throughout the market, with a $ 37.4 million outflow recorded during the week ended on 4 April.
Ath open interest is low, and funding rates are negative
Another factor that reduces the price of ether is a lack of enthusiasm in its derivative market, which is evident from low open interest and negative funds.
Open Interest (OI) – The total number of outstanding futures and option contracts – least, indicates low merchant participation and speculative activity. Currently, at $ 16.7 billion, the metric seen on January 24 is 48% below its peak of $ 32.3 billion.
By demolishing investors’s confidence or reducing interest of investors, which may increase the price fall in the form of pressure lack.
ETH open interest in all exchanges. Source: Curring Class
Compounding this issue is the negative funding rate in Ether of Ether, which is hovering below 0%, showing that the spirit of recession dominates the market.
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When the rates become negative, it means that shorts (bets against price) are paying long to keep their positions open, suggesting dominance of the feeling of recession.
ETH funding rates in all exchanges. Source: Glasanode
Layer -1 Blockchain Outpace Atherium Network Activities Combat
The high gas fee of Ethereum offers an opportunity to compete layer -1 blockchain that focus on high scalability to eat in its market share in space. While a fraction of the activity has moved to the atherium layer -2 solutions, some users and developers choose other top layer -1 options such as BNB series, solana, avalanche and tron.
As a result, Etreum’s network activity growth has fallen behind its rivals.
Top blockchain 24-hour Dapps volume, ranked by USD. Source: Dappradar
Unique active wallets (UAW) of Ethereum – Addressing with decentralized applications (DApps) on the platform – fell by more than 33% in the last 30 days, while Solana declined by just 16% and 16% on Tron.
Similarly, the total number of transactions deployed on the Etharium network decreased by 40.5% during the same period, while transactions on BNB series, Solan and avalanche decreased by 16%, 30% and 23% respectively. Transactions on Tron and Fantom increased by 23% and 16%.
There is no indication that the factors weighing at the cost of ether – such as a decline in network activity and low demand for its spot ETF products – will soon be upside down.
Although it does not guarantee that the price of ether will remain in an extended dowtrand, technical setup suggests that ETH may be priced at $ 1,000.
There are no investment advice or recommendations in this article. Each investment and business move include risk, and readers should conduct their own research while taking decisions.
