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Cryptocurrency Ecosystem => Ethereum Forum => Ethereum News & Updates => Topic started by: RSRS on August 10, 2021, 02:01:19 PM
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Market participants have rushed to buy ETH following Ethereum’s much-anticipated London hardfork. Although prices have risen due to the growing demand, some technical and on-chain metrics suggest that a spike in profit-taking is underway.
Sell Signals Appear for Ethereum
Despite the bullish momentum, Ethereum could be facing an imminent correction.
ETH has enjoyed an impressive run-up after breaking out of a descending triangle on Jul. 22. Since then, the second-largest cryptocurrency by market cap has surged by nearly 60% to reach a high of $3,200. Now that the projected target has been met, multiple red flags are beginning to pop up.
The Tom DeMark (TD) Sequential indicator has presented a sell signal on ETH’s daily chart. The bearish formation developed as a green nine candlestick, anticipating a one to four daily candlesticks correction or the beginning of a new downward countdown.
Ethereum’s Market Value to Realized Value or MVRV adds credence to the pessimistic outlook. This on-chain metric quantifies the average profit or loss of all addresses that have purchased ETH within a specific period.
The 30-day MVRV ratio is currently hovering at 26.58%, suggesting that all addresses that have bought ETH in the past 30 days sit at an average profit of 26.58%. According to behavior analytics platform Santiment, the higher the MVRV ratio, “the higher the risk that Ethereum holders will begin to sell and reduce their exposure.”
More information (https://cryptonews.net/en/news/ethereum/1366765/)
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While August is still on the calendar, of course, ethereum may now go into correction, given its recent price increase of 60 percent. The economic situation in the world continues to deteriorate and this forces people to take profits after each phase of good price increases. However, it will still be short-lived, with the onset of autumn I expect a very large rise in prices in this market. While there is still time, let ethereum be better off now for a correction than it will happen later, when the real bull run really begins.