- Ether has a chance at reclaiming $2200 if $1800 holds
- ETH daily active addresses, exchange outflow on the rise but network activity down
- An increasing amount of multi-collateral DAI debt repaid
- Bulls waiting for an uptick in active deposits and active withdrawals from know addresses
JAIPUR (Coinchapter.com) – Excessive bearish pressure has resulted in Ethereum bulls getting the short end of the stick. Renewed hopes of a recovery dashed when sellers dragged ETH prices from $2400 down below $1900.
But according to Santiment, the lights are not out yet. Bulls are trying hard to save the second-largest cryptocurrency from crashing to yearly support around $1700, the on-chain market metrics provider noted. “For now, as long as the $1800s hold, we’ve got a chance to make it back towards the $2200s to test the resistance trendline.”, Santiment said in its latest ETH market analysis.
A 6% drop away from current prices will lead to ETH retesting the $1750 support. Going by the present technical scenario, it’s pretty much possible. RSI has been in a downtrend since July 4. And the MACD indicator’s bearish cycle is still far from over. Overwhelming selling pressure has dominated the bulk of ETH price action from July 7 to date. The same doesn’t seem to be dialing down anytime soon unless London hard fork dates are close.
Some analysts have called for a revisit to the $1600 and $1400 price levels. “If you liked ETH at $4130, you’re going to love it at $1430”, said traderRB.
“…$ETH – watching higher time frames if this weekly level breaks, would be looking at $1600s to buy then $1400…” crypto analyst Josh Rager noted.
Silver Lining For ETH
As per Santiment’s observations, despite ETH’s price decline, daily active addresses (DAA) on the Ethereum network have remained consistent since the beginning of the year. However, network growth has hit a snag.
If traffic on the Ethereum network ticks up, the bullish case for ETH will shape up nicely. “ETH’s Network Growth is still trending downwards for now, which isn’t a good thing. Would prefer to see occasional spikes and higher highs in terms of network growth. If we do get that, a stronger bull case can be built. Till then, the assumption is that we have exhausted new participants….until the next craze (whatever that may be).”, said Santiment.
Declining ETH supply on exchanges is still something that has kept bullish hopes alive. Also, the debt repaid in Maker/DAI has shot up considerably. All the more due to dropping ETH prices. Santiment observed that Defi users are exiting their borrowing positions in fears of being liquidated, which is a good sign. According to the blockchain analytics firm: “This is usually a good sign of confidence waning, and if you observe the times this behavior occurred (repaying debt) on the chart, it often marked the bottom for a bounce.”
Active Wallets And Addresses
A supposed bullish scenario, according to Santiment, will be a spike in “active deposits and active withdrawals from known addresses.” That’s something the on-chain analysis firm said is what Ethereum bulls are waiting for.
“During the last mini bounce, there was a spike in both but quickly fell. Something more consistent will be a great sign.”, Santiment added.