Did the recent advances in Ethereum make a difference?

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Many people are worried about Ethereum right now because, despite recent recovery efforts, its price hasn’t been moving in the right way. In truth, the world’s largest altcoin is losing not just investors, but also a significant amount of money in the market.

In the last 21 days, the market capitalisation of ETH has dropped by 21.6 percent. Does the wider picture hint to ETH’s price breaking down in the future, despite modest advances in the recent 24 hours?

Ethereum to fall once again?

Although the coin did not manage to hold its position consistently on the charts, at least it saved itself from falling much further before gains set in. According to popular analyst Rekt Capital, for instance, the altcoin fell through its wedging structure. This wedging structure had allowed the coin to consolidate within the trend lines and for the most part, it is expected to break above it and engage in a rally.

“ETH is breaking down from its blue wedging structure.
Price is now posing pressure on the orange support area, which is where #ETH rebounded from twice before over the past couple of months.
A rebound could happen here but it may be weaker than before”

As highlighted previously, a rebound did come in the form of the larger market recovering somewhat on the price charts. Whether it will be weak, however, is a question for another time.

ETH critical support and breaker level | Source: Michael Van de Poppe

Since it failed, it’s best to think small and in a less sophisticated manner. Analyst Michael Van de Poppe just stated the altcoin’s critical levels. If Ethereum drops back to its former levels, important support will likely stay in the $1500-$1700 zone. The critical breaker, on the other hand, will remain at $2400.

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Even metrics agree

Despite its improvements over the last 24 hours, Ethereum’s key charts continue to show how gloomy these events have been. First and foremost, the MVRV ratio indicated that ETH was in the less profitable or minimum profitable zone at the time of publication. It was at a level that had not been witnessed in over 9 months.

Ethereum MVRV ratio | Source: Glassnode – KogoCrypto

The Spent Output Profit Ratio (SOPR) can also be seen, with the indicator displaying the difference between the price at which the coin was sold and the price at which it was minted. According to the same source, ETH is currently being sold at a loss. The ETH market appeared quite negative on the 30-day SMA, adding to the likelihood of a more significant drop on the charts if the altcoin is unable to maintain its rebound.

Ethereum SOPR | Source: Glassnode – KogoCrypto

Despite all of the bearish signals, there was still reason to be optimistic, as indicated by the NUPL chart. Despite the fact that the indicator was in the yellow zone, it still had bullish and positive signals because it showed a bullish market mentality.

Ethereum NUPL | Source: Glassnode – KogoCrypto

Where the coin will go from here is a mystery, but any investment must be undertaken with extreme caution because the market cannot move sideways.

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