After weeks of rallying, yesterday for the first time Ethereum saw some changes in its price movement. In fact, the same thing happened with Bitcoin as while it fell to $ 46k, Ethereum touched $ 3,200.
Will Ethereum Fall Again?
Not completely. Since the second generation cryptocurrency has recovered by almost 80% In the past few weeks, it makes sense that some fixes will start to appear along the way. In line with the same, ETH was down 5% yesterday, posting its biggest single-day decline since July 8.
However, more notable was the Parabolic SAR which moved its position above the candles for the first time in a month. This is a sign that a downtrend is starting in the market.
Furthermore, the Relative Strength Index (RSI) has also been falling, as the MACD envisioned a bearish crossover along the way. These are strong indicators of a correction. However, investors have been preparing for this path even before these signs began to appear.
The sale started earlier and as of now, more than $ 4.4 billion in 1.4 million ETH has returned to exchange wallets. Yet surprisingly, at the time of writing this report, this trend had once again changed.
What are investors doing now?
For the moment, investors have returned to HODLing. During corrections, people tend to sell mostly, but because those corrections are not apparent at the moment, they buy back more ETH.
This is an effect of the recent rally, one in which everyone looked at the profit potential. And if there is a rebound in the future, after a substantial period of sideways movement, they could make a profit.
This claim can be supported by the Bid-Ask spread chart, which showed buy and sell orders and the average price at which they were placed. The spread, at the time of publication, showed a higher demand to buy than to sell, at least 11,000 ETH more in purchases.
Lastly, the spent production profit ratio is also falling, a metric that shows whether the market is bullish or bearish. This comes after the indicator hit a 3-month high of 1.11. In conclusion, as an investor, don’t expect Ethereum to become overtly bearish. However, it would be wise to prepare for some price drops.
This is a machine translation of our English version.
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