Ethereum has gained value over the past three days, reaching $2,444. However, despite this rise, there is still uncertainty about whether the price will be stable in the short term. Some indicators in on-chain data could carry a potential bearish signal for investors.
With the recent rise of Bitcoin, there has been a general recovery in the crypto market. Ethereum has also followed this rise, increasing by about 6%. However, although the demand zone between $2,252 and $2,440 is considered a reversal area, uncertainties in the market in general still persist.
Some of the reasons for these uncertainties are:
Uncertain macroeconomic policies and Fed interest rate changes.
The effects of geopolitical tensions such as the Iran-Israel war.
The 365-day MVRV rate is trending at around -14%.
The decrease in whale transactions and the increase in the amount of ETH on exchanges.
The lack of interest from institutional investors in Ethereum at its current price levels indicates a lack of new capital inflow into the market. This also reveals the lack of new investments in the network’s growth indicators.
When investing in the Ethereum market, it is of great importance to carefully monitor these indicators and prioritize risk management. Being prepared for changes in market dynamics requires taking strategic steps against possible price movements.