Ethereum

The post <a rel="noopener noreferrer nofollow" href="https://coinpedia.org/altcoin/ethereum-could-trigger-a-major-liquidation-while-testing-crucial-support-heres-eth-prices-next-move/">Ethereum Could Trigger A Major Liquidation While Testing Crucial Support! Here’s ETH Price’s Next Move</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a>
Despite Ethereum’s (ETH) significant price increases towards $2,100, triggered by BlackRock’s application for a spot ETH ETF, there is growing concern about a potential profit-taking downturn as the price approaches a critical support line. Market analysts observe that investors who initiated long positions during the recent price rally are showing signs of <a href="https://coinpedia.org/price-analysis/ethereum-whales-selling-spree-sparks-worries-for-eth-price/" rel="noopener noreferrer nofollow">impatience</a> as the bullish momentum for ETH fades. Consequently, a drop below this support line could bring a substantial sell-off in the market.
<h2 class="wp-block-heading" id="h-ethereum-s-nvt-ratio-still-favors-bulls">Ethereum’s NVT Ratio Still Favors Bulls</h2>
Over the last 24 hours, there has been a significant long liquidation after the ETH price failed to hold its momentum near $2,100. As a result, long-position holders liquidated over $7.2 million worth of positions as the price went against their bullish bets.&nbsp;
However, there’s a bullish hope that might prevent a sudden decline as the NVT ratio still favors the bulls. Data from IntoTheBlock reveals that the NVT ratio (Network Value to Transaction) has been dropping over the past few days.&nbsp;
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The “NVT ratio” serves as a metric comparing Ethereum’s market capitalization with its transaction volume. A high NVT ratio indicates that Ethereum’s market value significantly surpasses its network’s coin transaction capacity.&nbsp;
This difference could imply that the altcoin is currently overvalued. Conversely, a low NVT ratio suggests that Ethereum might be undervalued, as it denotes a relatively high transaction volume on the blockchain in comparison to its market cap.&nbsp;
The ratio has decreased from a peak of 66.91 to a current low of 47, indicating that as increasing numbers of holders engage in ETH transactions, the price of ETH is becoming more affordable.
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Interestingly, the long/short ratio currently trades at 0.99. This closely contested scenario reflects a nearly even split, with 49.8% of positions being long and 50.2% being short, highlighting a tough war in the market.&nbsp;
<h2 class="wp-block-heading" id="what-s-next-for-eth-price">What’s Next For ETH Price?</h2>
Ether recently bounced back from the key $2020 mark, suggesting that bulls are attempting to establish this level as a new support. However, bulls continue to struggle to hold momentum above $2,100. As of writing, ETH price trades at $2,054, declining over 0.5% from yesterday’s rate.&nbsp;
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The buyers are gearing up for another push to breach the $2,200 barrier. If successful, the ETH price could gain significant momentum and potentially surge towards the $2,453 mark. Another push will send the price toward $3,000, especially since there’s no major resistance in that range.
On the flip side, the bears are preparing to strongly defend the $2,200 level. A reversal from this point could lead to a period of consolidation for the price, oscillating between $2,000 and $2,100. A negative shift in the short-term trend could be triggered if the price not only falls below $2,000 but also stays below it. Under such a situation, the price might plummet toward the 200-day Exponential Moving Average (EMA), currently at $1,860.

Ethereum Could Trigger A Major Liquidation While Testing Crucial Support! Here’s ETH Price’s Next Move

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