Sell-side pressure over the past two days has seen the price of Ethereum dip below key support at the $160 level. Currently, the second-largest cryptocurrency by market cap is priced at $159. But has fallen 8% from its recent high just two days ago.
This move reversed an uptrend that peaked at $173 following the so-called “Black Thursday” crash. What’s more, the rejection has also seen Ethereum fall back below the ever-important 200-day simple moving average on the daily chart, seen below.
Indeed, in line with this bearishness, crypto-asset trader @cyrii_MM noted unusual activity on Bitfinex’s ETH/USD market. Data shows a huge 145% increase in the 24-hour price versus the 30-day price.
Back on March 10th, Ethereum was trading significantly higher having closed at just under $200. As such, a positive price percentage change on falling price points to the possibility of sell pressure building.
Is an Ethereum Price Dump Incoming?
On that note, the CEO of Three Arrows Capital, Su Zhu also noticed an unusually large ETHUSD buy wall on Bitfinex. To which he also drew attention to the ETHUSD volume ratio, at $72 million, closing in on BTCUSD, at $102 million. Which Zhu remarked as a further peculiarity, in that BTCUSD volume ratio normally significantly dominates that of any other alt pairing.
— Su Zhu (@zhusu) April 10, 2020
Given the pattern of these events, some traders remain cautious of an Ethereum price dump in the near term.
Having said that, Ethereum’s fundamentals remain as strong as ever. For example, as previously reported, Glassnode, the analytics group, recently reported that Ethereum’s current market value to realized value (MVRV) ratio is presently undervalued.
Their latest research put the MVRV ratio at 0.8. Any score below 1 indicates…