Menu

Categories:

Hot right now:

Follow on:

Coinsurges provides coverage of fintech, blockchain, and Bitcoin, delivering the most recent news and analyses on the future of money. Stay up-to-date with live prices, charts, and trading options for the top exchanges. Keep track of the day's top cryptocurrency gainers and losers, as well as which coins have experienced gains and losses in the past 24 hours.
Trust Coinsurges as your go-to source for all news and updates in the industry.

Menu

Categories:

Hot right now:

Follow on:

Coinsurges provides coverage of fintech, blockchain, and Bitcoin, delivering the most recent news and analyses on the future of money. Stay up-to-date with live prices, charts, and trading options for the top exchanges. Keep track of the day's top cryptocurrency gainers and losers, as well as which coins have experienced gains and losses in the past 24 hours.
Trust Coinsurges as your go-to source for all news and updates in the industry.

Ethereum Nears ‘Critical Zone’ Historically Linked To Market Bottoms – Is A Rebound Incoming?

Share This Post

According to a recent X post by crypto analyst Ali Martinez, Ethereum (ETH) is inching closer to a critical demand zone that has historically marked market bottoms. Notably, ETH has declined by more than 21% over the past two weeks.

Ethereum About To See Trend Reversal?

Ethereum may soon witness a relief rally, as the second-largest cryptocurrency by market cap nears a key demand zone that has historically marked market bottoms and offered strong buying opportunities.

Sharing his analysis, Martinez posted the following chart, illustrating how ETH is likely approaching the -1 standard deviation pricing band based on Market Value to Realized Value (MVRV) Extreme Deviation Pricing Bands.

ali

According to the chart, the -1 standard deviation pricing band lies around $1,387, while ETH’s realized price hovers around $2,005. The last time ETH touched this band – back in July 2022 – it marked a local market bottom.

For the uninitiated, MVRV Extreme Deviation Pricing Bands are on-chain metrics that help identify potential market tops or bottoms by measuring how far ETH’s current market value deviates from its realized value. These bands highlight historically significant overvalued or undervalued zones, often aligning with periods of extreme investor sentiment or price reversals.

As ETH nears the -1 standard deviation pricing band, it suggests the asset may be significantly undervalued at its current price. Fellow crypto analyst TraderPA appears to support Martinez’s view.

In an X post, TraderPA shared a weekly Ethereum chart showing that ETH’s price decline aligns with a low Stochastic Relative Strength Index (RSI) value – indicating the cryptocurrency may be oversold following the recent sell-off.

traderPA

The Stochastic RSI is a momentum indicator that applies the stochastic oscillator formula to RSI  values rather than price, making it more sensitive and responsive to short-term movements. Unlike the standard RSI – which ranges from 0 to 100 – the Stochastic RSI ranges between 0 and 1, helping traders identify overbought or oversold conditions.

Whales Losing Confidence In ETH

While Martinez and TraderPA’s analyses suggest ETH may be undervalued, recent whale activity points to a possible loss of confidence. A previously dormant ETH whale dumped 10,702 ETH after nearly two years of inactivity, signaling weakening conviction among large investors.

Interestingly, the whale had originally received ETH back in 2016, when it was valued at just $8. Despite holding through the 2021 peak near $4,000, the recent price drop seems to have triggered a significant sell-off.

Additionally, Martinez’s latest analysis suggests that ETH could drop to $1,200, as the asset continues to break below multiple key support levels. At press time, ETH trades at $1,553, up 5.5% in the past 24 hours.

ethereum

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Bitcoin Expert Samson Mow Reveals Why BTC Is Not Trading At $10 Million Per Coin Already

Samson Mow, a Bitcoin expert and the Chief Executive Officer (CEO) of JAN3, a BTC-focused infrastructure firm, has shared a striking take on the current valuation of the flagship cryptocurrency

From $4.5B to $20B: Grayscale Bullish on AI Crypto’s Future, Cites Key Catalysts

The market capitalization of tokens in the artificial intelligence (AI) crypto sector has surged from $45 billion in 2023 to $20 billion in just two years Growth has however slowed this year, with

XRP News Today: VivoPower Announces a $121M Private Funding to Become First XRP Treasury-focused Publicly Traded Company

The post XRP News Today: VivoPower Announces a $121M Private Funding to Become First XRP Treasury-focused Publicly Traded Company appeared first on Coinpedia Fintech News VivoPower International PLC

Ethereum Futures Market Boom As Open Interest Surges To A New Peak

Ethereum has gained bullish traction with the crypto asset reclaiming and surging past the $2,600 price level as Tuesday drew to a close ETH’s recent upward performance has been attributed to

Crypto Firms Flee Ukraine—Weld Money Becomes Latest To Exit

Ukraine’s crypto card market is shrinking fast Weld Money, a fintech that let people spend crypto through a Mastercard-linked card, is closing its doors in the country Users have been told to pull

‘Bad Idea’ Be Damned: Arkham Maps Strategy’s Billion-Dollar Bitcoin Hoard

While Strategy founder Michael Saylor dismissed the idea of exposing the firm’s bitcoin wallet addresses as a “bad idea,” Arkham Intelligence appears to have done some digital sleuthing of its
You have not selected any currencies to display