The crypto space was believed to have kick-started a significant recovery phase as Bitcoin prices had climbed above $17,000 for a few hours. The Ethereum price also ranges well above pivotal levels around $1250. Meanwhile, the BTC price dropped back below the levels, but the ETH price continued to maintain its strength.
Hence it could have been ascertained that the bulls may carry forward the rally higher. But the bearish bells continue to hinder the progress of the rally as the on-chain metrics point towards a hefty downfall very soon.
According to Cryptoquant, Ethereum’s price is on the verge of dropping hard and hitting $450 as the top altcoin has been trading within a parallel channel since 2017.
The channel has been historically determining the tops and bottoms, and hence it is assumed that the ETH price may again reach the bottom around $450. This price, interestingly, has been the base whenever the price marked its bottom in 2017, 2019 and 2020.
On the contrary, the on-chain metric is flashing bearish signals for the crypto as the exchange reserves appear to have dried up. This indicates the downfall of the asset is expected to continue for a long time. Below are some metrics that point toward the revival of a bearish trend.
- The ETH exchange reserves have dropped more than 20% since the merge. The levels are from 24.39 million to the current levels of around 22 million.
- Besides, the supply held on exchanges also dropped heavily, meanwhile, the supply out of exchanges has surged. Presently, 106 million ETH tokens were flushed out of exchanges.
- The number of addresses has witnessed a significant surge ever since the price slashed after the FTX collapse. The address holding 100 to 100,000 ETH has surged to a 20-month high
Collectively, the Ethereum (ETH) price has been on the radar despite showcasing some stability. Therefore, as analysts predicted, the price may eventually mark the bottoms around the support of the multi-year trend line and rebound nicely to lay down a firm upswing ahead.