Ethereum price could suffer setback to $2,000 according to bearish on-chain metrics – FXStreet


Ekta Mourya Ekta Mourya

Ethereum is trading at $2,372 on Monday. This puts the altcoin in a key demand zone. In the event that Ethereum price drops below the demand zone, the altcoin is likely to suffer a setback to $2,000. 
On-chain metrics for the altcoin are flashing neutral to bearish signals, as seen on Santiment.
Also read: BlackRock steers clear of XRP ETF launch amidst SEC v. Ripple lawsuit
According to data from crypto intelligence tracker IntoTheBlock, Ethereum price is in the demand zone between $2,368 to $2,373. A drop below this area could see Ethereum price drop to the zone between $2,010 and $2,082, since there is no significant barrier in the path, as seen in the chart below. 
On the other hand, if ETH price rallies, it faces resistance at the $2,440 level. The zone between $2,373 and $2,440 is where 903,110 ETH addresses scooped up 4.73 million Ether. 
In/Out of the Money around price. Source: IntoTheBlock
When the Network Realized Profit/Loss (NRPL) metric, which is used to track the profits realized by Ethereum holders, is combined with the whale transactions valued at $100,000 and higher, it could be assumed that large wallet investors are likely engaged in profit-taking.
As seen in the Santiment chart, the spikes in whale transactions coincide with the profit-taking spikes in the NRPL metric. Profit-taking activities by large wallet investors typically increase selling pressure on the asset and drive prices lower. 
Ethereum NRPL and whale transactions. Source: Santiment
Volume is another key metric used to track the on-chain activity of an asset. ETH volume has declined between January 10 and 22, according to Santiment data. Volume has dropped alongside a decline in ETH price. Dwindling volume and activity supports the thesis of a correction in the asset in the short-term. 
ETH Volume and price. Source: Santiment 
Ethereum price lost around 4% in the past week. ETH price hit its 2024 peak of $2,715 on January 12 and corrected to $2,372, at the time of writing. 
ETH/USDT 1-day chart

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XRP price declined by 8% in the past week. The altcoin’s price has been in a downward trend since November 13, 2023. On-chain metrics signal a recovery in XRP price in the short term. Drivers of XRP’s price decline are likely slowing down and the altcoin has potential to recover.
The last time Bitcoin price rallied was owing to a fake post about the spot Bitcoin ETF receiving approval, for which the Securities and Exchange Commission (SEC) received considerable flak. In response to this hack, the SEC stated it would be conducting an investigation, and per the recent findings, the regulator claims it is not at fault.
Bitcoin price is potentially set to take a detour, much to the surprise of the bears, who were expecting further drawdown as signals indicate a recovery at hand. Much of this comes from the miners, who have historically acted as a strong signal of a probable rally.
Solana (SOL) price lost the support due to the confines of the ascending parallel channel on January 18, triggering a cascade of losses for SOL holders and culminating in the Layer 1 (L1) token breaching a critical support. 
Bitcoin currently trades around $41,094 after dropping 4.60% on Thursday, putting an end to the $2,000 trading range. This move comes after Adam from GeeksLive noted that the volatility level of BTC dropped to a new low in a month.
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