Ethereum (ETH) has experienced a significant drop in price, going from $ 2,800 to around $ 1,900 in recent weeks. This drop has triggered a major lower signal, the first of its kind in two years.
However, the current price action may also suggest that recovery could be on the horizon.
Ethereum has a chance of recovery
Ethereum’s prize recently fell below the price made for the first time in two years, a development that has aroused concerns among certain investors. This decrease reduced the value of market value on the market (MVRV), indicating that investors are confronted with approximately 7% losses.
Although it may seem to be a drop at first glance, it actually presents a potential bullish signal. The previous time, Ethereum had to face this situation, the Altcoin rebounded and the MVRV ratio improved as the price has recovered. This model has given certain market players to hope that the current situation could lead to a similar recovery.
At the macro level, the overall momentum of Ethereum shows signs of improvement despite the recent slowdown. The change in the net position of exchange, which follows the flow of Eth in and outside the exchanges, decreased.
This indicates that investors accumulate Ethereum rather than selling it, which is a positive sign. Investors consider current low prices as an opportunity to purchase, anticipating a future price increase.
This change in investors behavior is reflected in the purchase of 138,000 ETH worth around 262 million dollars this week. The influx of capital in Ethereum supports the idea that many investors are positioning themselves for a rebound.
Eth Price Eyes a rally
Ethereum is currently negotiated at $ 1,897, down 32% in the past two weeks. The Altcoin is above the support level of $ 1,862, which could serve as a basis for a potential rebound. If Ethereum maintains this level, it can find its way to higher prices in the coming weeks.
For Ethereum to confirm a recovery, he must violate and return $ 2,141 in support. This level is essential for the ETH to evolve around $ 2,344 and guarantees a more sustained ascending movement. The factors discussed, in particular the resumption of RSI and the accumulation of investors, are likely to contribute to Ethereum’s ability to achieve this objective.
However, if wider market conditions aggravated, Ethereum could fall below the support of $ 1,862, which pushed the price to $ 1,745, or even $ 1,625. A drop at these levels would invalidate upward perspectives and suggest additional drop potential.
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