Ethereum (ETH) is currently experiencing a downturn amidst macroeconomic concerns and volatility in the broader crypto market. Crypto analyst Ali (@ali_charts) has flagged a crucial indicator that may point to an accumulation phase for ETH, particularly when observing the Market Value to Realized Value (MVRV) Ratio. Analyzing this ratio, Ali suggests a crossover above its 160-day moving average (MA) historically signals strong accumulation zones in Ethereum. ➡️ [Link to tweet]. This is important as it indicates ETH may be poised for sustained growth after the recent price decline.
The current bearish outlook on ETH has been driven by factors such as a significant sell-off spanning multiple days, and the market’s reaction to inflation data. Despite falling 44% year-over-year and approaching its largest quarterly decrease since the 2022 bear market, ETH is still a prominent player in the crypto space.
While Ethereum’s price remains under pressure, bulls could signal a potential shift with a sustained break above $2,111. The 50-day SMA around $2,293 may act as resistance, while a breakthrough could lead to further upside and target $2,550. On the downside, support at $1,800 – $1,754 remains crucial for buyers. A drop below this zone could potentially reignite the downtrend and trigger the next price point of interest.
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