Ethereum was forced to retreat right after hitting its all-time high of $1,439. The crypto-asset was down by more than 12% since then and was currently valued at $1,263. Despite a strong bullish momentum amidst a broader crypto market resurgence, ETH failed to hold its fort above the recently established mark.
Was the ATH temporary or its it just the beginning?
This is what Fundstrat Global Advisors’ cryptocurrency team had to say about Ethereum’s price movement after predicting a $10,500 price target in the coming days:
“We continue to believe Ethereum fundamentals are incredibly strong and think [ethereum] represents the best risk/reward investment play in crypto,”
Ethereum’s Daily Active Deposits
According to the crypto-analytic platform, Santiment, Daily Active Deposits for Ethereum has been less which depicted less intention to sell by the investors in the market. A positive indicating despite the sharp decline after establishing a peak further evidenced that an upside could very much be in the cards.
On the long-term, the second-largest crypto Ethereum exhibited promising and positive momentum. As the data from Santiment suggested that the funding rates for perpetual contracts on BitMEX for ETH were back in the neutral region.
Historically, there has been positive price momentum for the crypto-asset in the past when the funding rates positioned themselves in the neutral territory.
Short-term bearish?
According to the on-chain analytic platform, ETH’s 30-day MVRV ratio was found to be in red territory. It’s lower than on the previous top but still overinflated. The 30-day MVRV is at 30%, which Santiment calls is “a danger zone”.
Gauging at the MVRV, it was found that an asset falls into the danger zone when average trader returns become abnormally high for a certain length of time since their initial investment. Most often than not, this depicts that the crypto-asset was becoming overvalued due to variables such as profit-taking from these traders, or due to FOMO buyers playing the part for retail and whale investors.