Ether (Eth) The latest sale-off has been seen to have lost an important $ 1,500 support level, and a number of technical indicators suggest that ETH can witness a deeper correction before starting with a prolonged recovery.
Data displays Ether’s price dropped Below the realized price – an onchain metric that recalculates the market value of a cryptocurrency based on the price at which each coin last moves to the blockchain.
According to the contribution of the cryptoquant, ThekripolicETH price trade below this scale, which is the history of a bearish sign. When the realized price is above the price of the area, it usually acts as a resistance and area “most of the holders suddenly in a position of loss,” the analyst said.
Analyst added:
“The drops below the realized price often marked the capitulation stage, where investors lost confidence and begin to sell more.”
Ethereum realizes the price for accumulation addresses. Source: cryptoquant
In June 2022, the realized price of Ether fell under the price of the area, before 51% collapse in ETH prices following the Terra Luna Market Crash. A similar scenario was witnessed in November 2022, when the metric dropped below the price before the ether collapsed by 35% following The fall of the FTX.
Now that a similar scenario is playing, the current setup is freely reflecting the previous stages of continuity of continuity, with the price of ETH at risk of a deeper correction.
Spot Ethereum ETF Flow will remain weak
Spot Ethereum ETFS Continued to weaken, with more than $ 3.3 million in net outflows on April 8. In fact, these investment products recorded $ 94.1 million in the past two weeks against $ 13 million in the flow.
The investor’s lack of interest is about, especially since the institution’s demand is considered a major part of Ether’s appeal and has a role in the gains accumulated in May 2024 as investors bet on an approval of the ETF from the US Securities and Exchange Commission.
Spot Ether ETF Flow Table. Source: Farside Investor
This is also reflected in all other Ether products, along with the report from Coinhares Teaching That flows into Ethereum investment funds aligned with the bearishness visible throughout the market, with $ 37.4 million flows recorded at the end of April 4.
ETH open interest is low, and funding rates are negative
Another factor that weighs the price of ether is the lack of enthusiasm in the derivatives market, which has been proven by low open interest and negative funding rates.
Open interest . Currently, at $ 16.7 billion, the scale is 48% below the peak of $ 32.3 billion witnessed on January 24th.
The decline of OI signals that draw on the investor’s confidence or interest, which may exacerbate price decline as the purchase of pressure is drowning.
Eth open interest in all exchanges. Source: Coinglass
Inclusion -Including this issue is negative rates of funding to the Perpetual Futures Market of Ether, which walks below 0%, indicating that the bearish sentiment is dominant in the market.
Related: ETHereum Whale sells ETH after 900 days, missing $ 27M possible peak profit
When the rates become negative, it means shorts (bet against price) pays a long time to keep their positions open, suggesting a dominance of the bearish sentiment.
ETH funding rates in all exchanges. Source: Glassnode
Competing with Layer-1 Blockchain Outpace Ethereum Network activity
Ethereum gas fee Layer-1 Blockchain Focusing on high scalability to eat in sharing its market market. While a small portion of the activity has moved to Ethereum Layer-2 solutions, some users and developers choose for other top layer-1 alternatives such as Bnb chainSolana, Avalanche and Tron.
As a result, the growth of Ethereum network activity fell behind its rivals.
Top Blockchains ranked by 24 -hour DAPPS, USD. Source: Dappradar
Ethereum’s unique active dompets (UAW) – addresses that interact with decentralized applications (DAPPS) on the platform – rejected by more than 33% in the last 30 days compared to a 16% drop just Solana and a 16% increase in the tron.
Similarly, the total number of transactions deployed in the Ethereum network dropped 40.5% at the same time, while BNB chain transactions, Solana and Avalanche decreased by 16%, 30% and 23%, respectively. Tron and fantom transactions increased by 23% and 16%.
There is no indication that the factors weighing on the price of ether – such as denial of network activity and low demand for its ETF area products – are upside down anytime soon.
While it does not guarantee that the price of the ether stays in an extended downtrend, the technical prefunction suggests that ETH price can be lower to $ 1,000.
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
