Ether hasn’t performed well in terms of short-term gains over the last few days. Bitcoin, XRP, and Dogecoin are all doing better than Ether. As a consequence, ETH’s worth has fought the $1350 resistance for over two weeks.
Bitcoin’s price finally reached $20,000 and broke above the psychological barrier. BTC’s gains have fueled short-term upticks for altcoins. ETH, however, didn’t recover from the momentum.
We don’t know when Ether will break out. Technical indicators can give us clues about the future of ETH.
The ETH Price is Still Holding
At press time, Ether traded at $1,334.11. It has been consolidating in a tight band between the $1280 and $1350 since it peaked on Sept 23.
The price of Ethereum gained 3.5% because it is near the lower bound of $1280. It faces resistance at the $1350 mark. RSI rose slightly but there was no long-term momentum.
The next significant resistance for Ethereum is at the $1544 mark, where there are over 19.71 million addresses holding 3.76 million ETH tokens.
Recently, Fidelity announced a new Ethereum fund that will allow its clients to invest in Ethereum. With the announcement of new regulations, large transactions have gone up and institutions are more interested in ETH over the last few days.
Ether’s on-chain metrics show a different picture than the price.
On-chain Indicators Supporting Bears
The number of addresses holding more than 100 Ether has dropped recently. In October, it was 45,414. A new study shows that whale addresses are plummeting.
Ether’s network is less active than it has been in the past. Ether’s mean transaction volume dropped to 3.121 ETH on a 7-day moving average. The low trading volume of the stock market reveals how the market will stay pessimistic and hesitant.
The supply for Ethereum last Active 5 years has reached a monthly high of 8.855.342.913 ETH hence some long-term holders might be looking to make a move. This affects the price.
ETH NVT Ratio (7d MA) made a 2-year high of 3,154.557 presenting large bearish over-extension towards the market. We may need fundamental indicators to discover what might happen to the price of Ether.
Vectors (NVTs) have reached such high values and then subsequently experienced a significant price drop. The next significant support for ETH is at the $900 mark, according to IOMP.
