After three consecutive days of Bitcoin falling, the market accelerated again as Bitcoin posted gains close to 6% at press time. While the real currency’s recovery appeared to be slow, the main altcoin gained decent momentum with gains of 15% in 36 hours.
So once again, as Ethereum gained momentum, the market had its hopes pinned on the major altcoin.
Recovery, en route
As the positive comments from the Fed reassured market players, the recovery seemed almost inevitable. But lately, the major altcoin has been treading a pretty rocky path. In recent days, the altcoin hit a multi-week low of $ 2,652. However, ETH made a quick jump below the $ 2,800 zone.
With Ethereum trading around $ 3,130 at the time of writing, it marked a strong bounce from its crucial support level of $ 2,800.
In particular, Ethereum’s 7-day MVRV noted a strong rally from the undervalued zone on September 22. This was indicative of a recovery from a local low. However, if Ethereum makes a strong move above $ 3,200, a real rally from the upper altcoin with $ 3,400 could be confirmed as the next resistance.
This, coupled with the strong entries highlighted by the RSI rally on the lower time frame, were strong signs of recovery.
While the on-chain data pointed to a bullish outlook for ETH, it’s important to note that the latest market crash depended more on macro events like the Evergrande crash and SEC comments.
Now, while it seemed clear that recovery was on the way, is there really a rally on the Ethereum charts?
Despite the price gains, at press time, uncertainty regarding a rally was still lurking. One worrying fact about ETH’s recovery has been its ‘near stagnant’ network growth (7-day MA), as highlighted by a report.
During the last few months, while the price has continued to grow, the network participants did not see significant increases. This deviation is not a healthy sign.
At the time of writing, ETH network growth (7-day MA) was at its lowest in over a month.
The aforementioned downtrend in network growth could be attributed to the growth of L1 such as AVAX, FTM, and ATOM over the last month, and the gradual decline in NFT speculation.
Therefore, although the Mining Balances in constant growth and a slight increase in the Daily Active Directions show that on the price front it is recovering, the low strength of the network presents a disconcerting situation.
The next 24 hours will be crucial for the price of ETH, especially given that another key expiration date is approaching on September 24. This can play a key role in the direction of the trend for the top two currencies.
For now, while a recovery appears to be taking place, the market may have to wait for the post-expiration drama of the options to see which direction the market is heading.
This is a machine translation of our English version.