Ethereum

<p><i>Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.</i></p>
<ul>
 <li><em>Ethereum saw a pullback from just above the long-term resistance at $2300.</em></li>
 <li><em>The dip in active addresses pointed to a reduction in demand for ETH in the market.</em></li>
</ul>
<p><a href="https://ambcrypto.com/search/ethereum" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Ethereum [ETH]</a> noted a decent retracement of its gains earlier in December. While the trend and the market structure remained bullish on the one-day chart, some on-chain metrics outlined that selling pressure was on the rise.</p>
<p>The deflationary nature of Ethereum should inspire confidence in long-term holders. Estimates of <a href="https://ambcrypto.com/ethereum-heres-the-latest-prediction-for-its-price-and-supply/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">shrinking ETH supply</a> do not help in the short-term market sentiment, and a move to $2000 or lower was still a possibility.</p>
<h4>Will the $2130 support hold?</h4>
<div id="attachment_358611" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-2-ETH-price.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-358611" decoding="async" class="size-full wp-image-358611" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-2-ETH-price.png" alt="Ethereum reaches the 61.8% extension and retraces some gains, should we expect a bounce soon?" width="1940" height="1099" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-2-ETH-price.png 1940w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-2-ETH-price-300x170.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-2-ETH-price-1024x580.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-2-ETH-price-768x435.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-2-ETH-price-1536x870.png 1536w" sizes="(max-width: 1940px) 100vw, 1940px"></a>
 <p id="caption-attachment-358611" class="wp-caption-text">Source: ETH/USDT on TradingView</p>
</div>
<p>In early November, ETH shot skyward to reach $2130 and began to pull back thereafter. This retracement took nearly three weeks before Ethereum bulls were back in control.</p>
<p>They needed to capture the $2000 level as support and managed to do so and beat the local highs at $2130 afterward.</p>
<p>On the way higher, ETH took some time to consolidate at the $2030 region before the swift push northward. This region was highlighted in cyan. Combined with its proximity to the $2000 mark, it should serve as a strong support zone.</p>
<p>The $2019 level was the recent higher low, and a move beneath it would flip the one-day market structure bearishly. At press time, the RSI floated just above neutral 50 to denote bullish momentum.</p>
<p>The OBV was also in an uptrend, though it saw a dip in recent days.</p>
<h4>These metrics signal caution</h4>
<div id="attachment_358612" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-2-ETH-santiment.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-358612" decoding="async" class="size-full wp-image-358612" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-2-ETH-santiment.png" alt="Ethereum reaches the 61.8% extension and retraces some gains, should we expect a bounce soon?" width="3840" height="1300" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-2-ETH-santiment.png 2560w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-2-ETH-santiment-300x102.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-2-ETH-santiment-1024x347.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-2-ETH-santiment-768x260.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-2-ETH-santiment-1536x520.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/PP-2-ETH-santiment-2048x693.png 2048w" sizes="(max-width: 3840px) 100vw, 3840px"></a>
 <p id="caption-attachment-358612" class="wp-caption-text">Source: <a href="https://app.santiment.net/s/4EQbakpi" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">Santiment</a></p>
</div>
<p>The age-consumed metric saw some notable spikes over the past two weeks. The most recent one arrived on the 10th of December when ETH was trading at $2340.</p>
<p>A couple of days later, the mean coin age, which had previously been in a strong uptrend, cratered. This suggested a lot of ETH had been moved between addresses. Combined with the age consumed, it suggested a spike in selling pressure.</p>
<p style="text-align: center;">Is your portfolio green? Check out the <a href="https://ambcrypto.com/calculator/ethereum-profit-calculator" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">ETH Profit Calculator</a></p>
<p>This increased selling saw Ethereum prices fall toward the $2100 mark. Notably, the active addresses count began to falter over the past week. The MVRV ratio also reached a new high.</p>
<p>Holders whose ETH was in profit chose to sell their assets to realize some of these profits. Overall, the metrics suggested that long-term investors had reasons for concern.</p>

Ethereum price retraces: What does its prediction say?

AMBCrypto

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