- The price of Ethereum has fallen by more than 3% over the past seven days
- One key metric revealed that ETH was undervalued, indicating a recovery on the charts.
Ethereum [ETH] Price action turned to the upside on June 28, giving investors hope of recovering from their previous losses. Unfortunately, this upward trend did not last long, as the coin recorded a price correction soon after. This caused the weekly and daily charts to flash red.
Ethereum faces rejection
After the above mentioned price surge, ETH bulls have once again surged and pushed the altcoin price down by more than 3%. At the time of writing, the altcoin king is trading at $3,391.51 with a market cap of over $407 billion.
The worst news is that Ethereum has been rejected from the upper limit of the bullish wedge pattern in the recent past. According to a tweet From ZAYK Charts, a popular cryptocurrency analyst, the token’s price began consolidating within the pattern in late May. A successful breakout could have sent prices soaring by 30%, potentially allowing Ethereum to surpass $4K.
Interestingly, a similar pattern appeared earlier in March and then broke out in May. This allowed the altcoin to reach $3.89K on the charts. However, given ETH’s rejection this time, the chances of history repeating itself may be slim.
Source: X
Unable to recover ETH?
AMBCrypto then took a closer look at the current state of Ethereum to see if it would fail to break out of the bullish pattern.
We found that market sentiment around the altcoin king remained bearish. This was demonstrated by the decline in its weighted sentiment after its high on June 28. Its network growth also decreased slightly, meaning that fewer addresses were created to transfer the token.
Source: Feelings
However, some metrics were in favor of a successful hack.
For example, the MVRV ratio has improved over the past few days, which can be interpreted as a bullish signal.
AMBCrypto’s review of Glassnode data also revealed that Ethereum’s NVT ratio has dropped sharply. A drop in this metric typically means the asset is undervalued — which means a price rally is coming.
Source: Glassnode
AMBCrypto then took a look at Hyblock Capital data to look for immediate support and resistance levels.
According to our analysis, it will be necessary for ETH to touch and surpass the $3.5K level in order to sustain the bullish rally as liquidations will rise sharply. In general, higher liquidations often lead to price corrections on the charts.
Is your wallet green? Check the Ethereum profit calculator
On the other hand, if the bears continue to take control and ETH volatility goes south, it could drop to $3,060.
Source: Hyblock Capital
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