Ethereum Approaches Key Demand Zone Historically Indicating Market Bottoms
Crypto analyst Ali Martinez reports that Ethereum (ETH) approaches a critical demand zone, historically associated with market bottoms. ETH has declined over 21% in the past two weeks.
Potential Trend Reversal for Ethereum
- ETH nearing the -1 standard deviation pricing band at approximately $1,387.
- Current realized price of ETH is around $2,005.
- Previous contact with this band in July 2022 marked a local bottom.
- MVRV Extreme Deviation Pricing Bands indicate potential undervaluation of ETH.
TraderPA supports this view, indicating that ETH's recent price decline correlates with a low Stochastic Relative Strength Index (RSI), suggesting it may be oversold.
Whale Activity Suggests Loss of Confidence
- A dormant ETH whale sold 10,702 ETH after nearly two years, indicating reduced confidence among large investors.
- The whale initially acquired ETH in 2016 at $8 and held through peaks near $4,000.
- Martinez suggests ETH could drop to $1,200 as it breaks below key support levels.
- Current trading price of ETH is $1,553, reflecting a 5.5% increase in the last 24 hours.
