Since July 22, the largest altcoin in terms of capitalization has risen in price by 60%. Now technical indicators show that a correction may start soon
The Ethereum rate may decline sharply in the near future, says CryptoBriefing analyst Ali Martinez. He found "red flags" on the altcoin price chart, which has risen in price by 60% since July 22. On the night of August 10, the cost of the cryptocurrency reached $ 3.2 thousand. Now it can potentially drop to $ 2.7 thousand, the analyst said.
Martinez pointed out that the Tom DeMark (TD) Sequential indicator can speak of a possible correction in Ethereum. In addition, the pessimistic forecast confirms the indicator reflecting the average profit or loss of all addresses that bought ETH at a certain time (MVMR). The 30-day MVMR for Ether is currently hovering at 26.58%. This suggests that, on average, all addresses that bought ether in the last month have a profit of 26.58%. It is assumed that the higher the MVRV coefficient, the more likely it is for its holders to start selling the asset soon, which will put pressure on the quotes.
There is now a risk of a surge in profit-taking that will lead to a short-term correction in the Ethereum price, Martinez said. At the same time, the analyst warned that Ethereum has many support levels, the first of which is located in the $ 3050-2960 zone, according to the IOMAP model. The next barrier for sellers will be $ 2670-2860 (a decrease of about 15% from current levels). At this price, more than 1.12 million addresses purchased 2.63 million ETH.
On the other hand, according to the IOMAP model, between the $ 3340-3430 marks, more than 360 thousand addresses hold about 390 thousand ETH. The analyst explained that if the altcoin can overcome this obstacle, it will rise in price to $ 3.5 thousand.