Ethereum

Delta

when

Coin

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Ethereum’s price risks falling below $3,000 again due to seller dominance.</li> 
 <li>Market confidence in Ethereum might be shaken if the downward trend continues.</li> 
</ul>  
<p>The price of <a href="https://coineagle.com/price/ethereum/">Ethereum (ETH)</a> is at risk of dropping below the $3,000 mark for the second time in a short span.</p> 
<p>This information was derived from the Cumulative Volume Delta (CVD) which showed a drop in the daily ETH/USD chart.</p> 
<h2 id="buyer-seller-dynamics">Buyer-Seller Dynamics</h2> 
<p>The CVD tracks the difference in buying and selling volume of a cryptocurrency over time. When the CVD is positive, it indicates more buying activity than selling, which could lead to a short-term price increase.</p> 
<p>However, a negative CVD indicates that sellers are in control, making it challenging for prices to rise. At the time of writing, Ethereum was trading at $3,012, having failed to surpass the $3,100 mark.</p> 
<h2 id="other-indicators">Other Indicators</h2> 
<p>Other metrics, such as the Mean Coin Age (MCA), suggest that it might take some time for Ethereum to fully recover. The MCA measures the average age of coins on a blockchain. An increase in MCA indicates that older coins are returning to circulation, potentially leading to a sell-off.</p> 
<p>A decrease in MCA, on the other hand, suggests that holders are holding onto their assets rather than selling. Currently, Ethereum’s 90-day MCA has risen from 36.50 to 37.12, indicating increased trading activity.</p> 
<p>If this trend continues, Ethereum’s price could slip below $3,000. If buying pressure fails to keep up with the increased trading activity, the price could drop to $2,881, similar to the dip on July 5th.</p> 
<p>The Realized Cap, which represents the value of each coin when it last moved compared to its trading value, also supports this forecast. The one-day Realized Cap has dropped to $559.45 million, suggesting that some Ethereum holders are currently facing unrealized losses.</p> 
<p>If this trend persists, it could lead to a loss of confidence in Ethereum, potentially resulting in decreased demand for the cryptocurrency.</p> 
<p>Despite the potential for price drops, the current situation also presents a buying opportunity for those who believe Ethereum remains in a bull market. The impacts of this change may not be immediately apparent, but in the long term, Ethereum’s price could potentially see an increase.</p>

Back in Action: Ethereum Sellers Target $2,800 Mark Post-Short Respite

Table of Contents

CoinEagle.com

Other articles published on Jul 7, 2024

Join PawFury (PAW) as it dominates the meme coin scene with games that clean, NFTs with purpose, ...

Tezos (XTZ) Price At Yearly Lows: Has XTZ Bottomed Yet

AVAX Shows Divergence Between Spot and Derivatives Markets

Qubetics Whitelist Triggers a Massive Quake in Filecoin and Gala’s World

Bullish Signal On LUNC: Researcher Spots Potential Triggers

Invest Smart: The Best Altcoins for 200% Returns in 2024

Join our free newsletter for daily crypto updates!