Ether death cross threatens more downside as ETH price trades at a key support level

The extent of this downward movement could be restricted, considering the earnings levels of existing holders and the decline in ETHs liquid supply.ETH on-chain analysis recommends more downsideSince the beginning of 2023, Ethereums network value-to-transaction worth (NVT) metric has suggested that the asset might have been overpriced.Glassnodes NVT signal gauges the relative worth of the Ethereum network by comparing the market rate to the volume of on-chain deals. Source: GlassnodeNevertheless, the revenue levels of short- and long-term holders suggest that the decline could be restricted.Ethers unfavorable rate action generally reverses when the net unrealized profit/loss (NUPL) metric of short-term holders is negative, implying short-term holders are in losses. In 2022, ETH quickly recovered below the realized price metric as the profit levels of long-term holders dropped into unfavorable territory.The on-chain metrics reveal that the price might suffer some selling pressure from short-term holders and panic offering from investors alarmed by relatively lower levels of activity in 2023. The earnings levels of brief- and long-term holders recommend that the slump may not extend far enough and the cost could discover assistance above the $1,500 level.Related: Crypto investors cool on Bitcoin funds, turning to Ether and XRPETH/USD price analysis Technically, the ETH/USD pair reveals bearish threat in the short term with an upcoming death cross on the weekly scale. As the expiration date techniques, it is most likely that the price will remain subdued around the maximum pain level for alternatives buyers, which is at $1,850.

Source: GlassnodeNevertheless, the revenue levels of short- and long-lasting holders recommend that the slump could be restricted.Ethers unfavorable price action usually reverses when the net latent profit/loss (NUPL) metric of short-term holders is unfavorable, suggesting short-term holders are in losses. In 2022, ETH quickly recovered listed below the understood price metric as the revenue levels of long-term holders dropped into unfavorable territory.The on-chain metrics reveal that the rate could suffer some selling pressure from short-term holders and panic offering from financiers alarmed by fairly lower levels of activity in 2023. The profit levels of short- and long-term holders suggest that the downturn might not stretch far enough and the cost could discover assistance above the $1,500 level.Related: Crypto investors cool on Bitcoin funds, turning to Ether and XRPETH/USD rate analysis Technically, the ETH/USD set reveals bearish risk in the short term with an impending death cross on the weekly scale.
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Other Questions People Ask

What does the Ether death cross indicate for ETH price as it trades at a key support level?

The Ether death cross suggests a potential bearish trend for ETH price, indicating that the short-term moving average has fallen below the long-term moving average. This technical pattern often signals further downside risk, especially as ETH trades around critical support levels. Investors should be cautious as this could lead to increased selling pressure, particularly from short-term holders who may panic in response to market conditions.

How might the earnings levels of holders affect the Ether death cross and ETH price?

The earnings levels of both short- and long-term holders play a crucial role in determining the impact of the Ether death cross on ETH price. If short-term holders are experiencing losses, it could lead to selling pressure, but the overall decline might be limited due to the profit levels of long-term holders. This dynamic suggests that while the death cross indicates potential downside, the support level above $1,500 could hold firm if long-term holders maintain their positions.

What on-chain metrics should investors monitor regarding the Ether death cross and ETH price?

Investors should closely monitor the net unrealized profit/loss (NUPL) metric and the network value-to-transaction (NVT) ratio as they relate to the Ether death cross. A negative NUPL for short-term holders may indicate a reversal in price action, while an overpriced NVT could suggest that ETH is due for a correction. These metrics provide insight into market sentiment and can help investors gauge potential price movements in light of the current bearish signals.

What are the implications of a bearish trend following the Ether death cross for ETH investors?

A bearish trend following the Ether death cross could lead to increased volatility and potential losses for ETH investors. As prices hover around key support levels, investors may face challenges if panic selling occurs among short-term holders. However, understanding the earnings levels of both short- and long-term holders can provide a clearer picture of whether the downturn will be severe or if support will hold above critical thresholds like $1,500.