Ethereum is going the other way again after its last dip today. The largest altcoin fell below $1,800 for the second time this month and is looking to dip further into the ongoing support level. Tough love comes at a testing time with major cryptocurrencies in disarray.
Ethereum has continued the trip down south and has broken through the support level of $1,800 again in May. Currently trading at $1,727, it is down by more than 10.5% at press time. The last time ETH dropped below $1,800 was back in July 2021.
The crypto market itself is in a frenzy right now with $520 million liquidated yesterday. This indicates growing insecurities in the market with macro headwinds sailing in the “red” zone. With Bitcoin itself below $30,000, a negative threshold is already set for the crypto market. The stock market has officially entered bearish territory for the first time since early 2020.
According Weather, experts say the crypto market reflects increased volatility that accompanies war, continued inflation, and a shift in US monetary policy. Experts also point to other factors such as the crypto market following the stock market, more mainstream adoption, and the drop in prices over the past few months as contributing to what we are currently seeing with crypto prices.
The warning signs cannot be ignored with metrics also suggesting a period of extended turmoil for Ethereum. The investor sentiment is becoming more transparent recently through transaction activities among other signals.
ETH busted
The worrying signs are for everyone to see in Ethereum metrics. The Relative Strength Index (RSI) shows a growing trend of bearish activity. The index value here stands at a low 29.4, which effectively puts Ethereum in the “oversold” category. Despite the imperfections, this is a great time for accumulation with the asset available at discounted prices.
There was high activity observed on the network with the on-chain volume up by more than 100% in the past 24 hours. One reason for this is the extremely low volume seen in past days. Another reason is the whale activity, which has started to gain momentum in recent days after shooting up to new highs during the Terra collapse.
Finally, the MVRV ratio (30 days) also shows signs of a bearish trend on the Ethereum blockchain. The ratio is far in the oversold zone with a possible recovery still far away.
Investors must now hold on to their seats and of course, their assets as they sail through these harsh times of volatility.
