Key Points
Ethereum’s Price and Market Activity
On Boxing Day, the price of Ethereum (ETH) fell by over 5.6% to $3,340. This decline occurred amidst a broader downturn in the cryptocurrency market, with the total market cap of all coins dropping to $3.29 million.
The drop in Ethereum’s price occurred in a low-volume environment. CoinGecko data reveals that the 24-hour volume was $17.5 billion, down from $24 billion the previous day. This marks the lowest volume in over a month.
Alongside the price drop, Ethereum’s futures open interest also decreased. It reached a low of $26 billion, down from the month’s high of $28 billion. This decrease in open interest indicates a reduction in demand among futures traders.
Positive Indicators in the Ethereum Market
Despite the price drop, there were some encouraging signs in the Ethereum market. According to data from DeFi Llama, the total value locked in Ethereum’s DeFi ecosystem has grown by 5.50% in the last 30 days. In contrast, Solana and Tron’s TVL fell by over 3% during the same period.
The ratio of active addresses has also been on the rise in recent months. It has increased from an October low of 0.37% to 0.57%, its highest level since August. The total number of active Ethereum addresses has risen to over 927,000.
Technical data also shows that Ethereum’s Market Value to Realized Value (MVRV) score increased by 2.35% in the last 24 hours to 1.64. An MVRV figure of less than 3.8 suggests that an asset is relatively undervalued.
Analyzing Ethereum’s Price
The daily chart shows that the ETH price formed a small double-top pattern at $4,095 before making a strong bearish breakout. It then rebounded and retested the pattern’s neckline at $3,500, its lowest swing on December 3.
On Christmas day, ETH formed a small doji candlestick pattern. A doji, characterized by a small body and long upper and lower shadows, is typically a bearish sign. Ethereum has also formed a bearish flag chart pattern.
As a result, it is likely that the coin will experience a bearish breakout and reach the psychological point at $3,000, down by 10% below the current level.
Please note that this article is for informational purposes only and does not constitute investment advice.