tl;dr
Ethereum (ETH) has struggled to maintain upward momentum, falling below $3,000 at times, leading to increased selling by investors. The heightened selling pressure reflects waning confidence in Ethereum's ability to recover. However, the Network Value to Transaction (NVT) signal suggests Ethereum is...
Ethereum (ETH) has faced challenges in maintaining upward momentum, slipping below $3,000 and triggering increased selling by investors. This reflects declining confidence in Ethereum's recovery potential.
Despite this, the Network Value to Transaction (NVT) signal points to Ethereum's undervaluation, hinting at a possible recovery opportunity. The current price is consolidating under the $3,530 resistance level, with a potential breakout indicating bullish momentum.
Ethereum, the second-largest cryptocurrency by market capitalization, continues to grapple with ongoing struggles, intensifying investor caution and prompting significant sell-offs.
Investor sentiment toward Ethereum has notably shifted, leading holders to offload their assets amid mounting skepticism. Over $1.3 billion worth of ETH has been sold in the past week, demonstrating a surge in sell-offs and a lack of long-term holding confidence.
The NVT signal suggests Ethereum is undervalued, historically indicating potential for recovery and a medium to long-term rally. This may serve as a mitigating factor against sharp corrections, offering hope for a sentiment reversal.
Presently, Ethereum is likely to consolidate below the $3,530 resistance level, with a failure to breach signaling a potential decline in market confidence. Conversely, a successful breach could mark a turning point, pushing the price toward $3,711 and invalidating bearish sentiments.