Sales pressures over the past two days have seen Ethereum’s price plunge below key support at the $ 160 level. Currently, the second largest cryptocurrency by market capitalization is priced at $ 159. But fell 8% from its recent peak just two days ago.
The move reversed an uptrend that peaked at $ 173 following the so-called “Black Thursday” crash. In addition, the rejection also saw Ethereum fall back below the still large 200-day simple moving average on the daily chart, seen below.
Indeed, in accordance with this drop, the crypto-active trader @cyrii_MM noted unusual activity in the Bitfinex ETH / USD market. The data shows a huge 145% increase in the 24-hour price over the 30-day price.
On March 10, Ethereum was trading considerably higher after closing at just under $ 200. As such, a positive percentage change in price on the fall in prices indicates the possibility of selling pressure.
Is Ethereum price dumping happening?
On this note, the CEO of Three Arrows Capital, Su Zhu also noticed an unusually large ETHUSD buying wall on Bitfinex. He also drew attention to the volume ratio of ETHUSD, at $ 72 million, at the close with BTCUSD, at $ 102 million. Which Zhu noticed as another peculiarity, in that the BTCUSD volume ratio normally dominates significantly that of any other alt pairing.
– Su Zhu (@zhusu) April 10, 2020
Given the structure of these events, some traders remain cautious about falling Ethereum prices in the short term.
That said, the fundamentals of Ethereum remain as solid as ever. For example, as noted earlier, Glassnode, the analysis group, recently reported that the current market value ratio of Ethereum to realized value (MVRV) is currently undervalued.
Their latest research put the MVRV ratio at 0.8. Any score less than 1 indicates an undervaluation. Therefore, according to Glassnode, the price may go beyond the current market valuation.
“Ethereum’s MVRV ratio, a measure used to assess whether the price is above or below “fair value,” is currently 0.8 – indicating that it is currently undervalued. The price realized by ETH is currently $ 202, while the current market value is $ 164.“
BTC also continues to dominate ETH
Consistent with short-term bearish sentiment, Bitcoin also failed to break key resistance to the next level. Since rejection at $ 7.4k yesterday, the market leader has followed a downward trend, driving the rest of the market in fiat terms.
In addition, in a new blow to Ethereum, a review of the daily ETH / BTC chart shows the dominance of Bitcoin in effect.
Despite a slight increase on April 6, which saw prices soar far above the 200-day moving average, Ethereum continues to struggle to maintain the upward trend. It closed yesterday at 0.023, with a further decline today.
However, the latest decision is part of a broader downward trend, which sees Ethereum not regaining its shape before the resumption of mid-February.
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