The second-leading crypto Ethereum recently attained a new ATH beyond $4,800, and ETH flirts around the zone at the moment. Though market participants have expected the alt to explore $5,000 soon, gas fees and network congestion have been barriers to the optimistic target.
For now, it might be challenging to tell the direction ETH will exhibit. Santiment data said the ETH address activity gained 48% after the unique addresses bottomed out during later September sessions.
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Moreover, Crypto Quant executive Ki-Young states that the Ethereum market supply is not surging anymore. After the London fork, the Ethereum supply rate has been almost zero. Therefore, the alt turns out to be limited, which is a bullish sign for the 2nd-largest cryptocurrency.
Nevertheless, the Ethereum trading volumes and price actions have created a bearish divergence over the recent sessions.
Ethereum’s On-chain Bearish Indicators
According to Santiment, an on-chain data provider, ETH trading volume and price exhibits massive bearish divergence. Though the alt’s trading volume has tried to catch up with the price, it failed as it moved down instead. That has been the case since October’s last sessions.
Ethereum network loss and profit and the coin’s social volume show a similar case. Santiment pointed that long-lasting divergences pointed the idea to go down, a worrying scenario. Network activity has decreased even as the price pushes up. Moreover, individuals seem relaxed to book profits even when ETH surges, and they might see punishments. There are half chances that the market moves up following divergences, a confusing thing to traders. For now, it might be interesting to witness what price movements Ethereum will follow from its current level.
ETH secured the support of around $4,450 following a sharp drop. The alt formed base before starting a fresh surge past the resistance at $4,600. Ethereum managed to overcome 61.8% Fibonacci retracement of the plummet from the high of $4,865 to the $4,452 low. Meanwhile, the leading alternative coin broke past the resistance levels at $4,650 and $4,700. For now, the crypto trades at $4,749.
- Hourly MACD – ETH/USD MACD loses pace within the bullish territory.
- Hourly RSI – ETH/USD RSI nears the 50-mark
- Support – $4,650
- Resistance – $4,850