- The sellers have taken control of the Ethereum price trend, suggesting that the price may sink below $3,000.
- The daily realised cap has fallen, suggesting that market confidence may be eroded if this trend continues.
Ethereum Price [ETH] A drop below $3,000 for the second time in the space of a few days is at risk, according to data from AMBCrypto on Cumulative Volume Delta (CVD).
On the daily chart ETH/USD, the spot CVD is Dropped into negative territory. CVD tracks the difference between buying and selling volumes of cryptocurrencies over a period of time.
Buyers are struggling to withstand the pressure
A positive value means there are more buyers than sellers, which could lead to a short-term rise in the price of the cryptocurrency if this continues, whereas a negative value means that sellers have the upper hand.
Source: TradingView
In such a situation, it will be difficult for the price to rise. At the time of writing, the price of the altcoin was at $3,012. Earlier, ETH tried to rise to $3,100, but the bears rejected it.
However, apart from the CVD, other indicators suggest that it may take some time for the cryptocurrency to fully recover.
One such dataset is the Average Coin Age (MCA), which is the average age of coins on the blockchain. When the MCA increases, it means older coins are starting to re-enter circulation, increasing the likelihood of a sale.
However, the declining coin age means holders are refraining from selling, instead opting to store their assets in non-custodial wallets.
More old coins, more problems
At the time of writing, ETH’s 90-day MCA rose from 36.50 to 37.12. Increased trading activity Something related to cryptocurrency.
Prices have fallen from their July 6th value, meaning the majority of trading ended with sales.
If this trend continues, the price of ETH could drop below $3,000 and could even drop to $2,881 like it did on the 5th if buying pressure does not keep up with the upside.
Source: Santiment
In addition to the above, the realized caps are in line with predictions. The realized caps represent the trading value of each coin compared to its value when it last moved.
As a measure of the overall cost base, the daily realization cap was reduced to $559.45 million. Decreased This suggests that ETH has caused unrealized losses for some holders.
If this situation continues, the entire market may lose confidence in Ethereum and the demand for the cryptocurrency may decrease, which could lead to a drop in prices as mentioned above.
Source: Santiment
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Interestingly, as long as ETH is in a bull market, this drop also provides a buying opportunity.
However, the fruits of this change may not be seen for a few days or weeks. In the long term, however, the price of ETH could skyrocket.
