- Ethereum price shows a significant influx of investors actively participating in the network.
- The bears have successfully breached the 8-day exponential moving average.
- Invalidation of the bearish thesis is a breach above $1,330.
Ethereum price could become problematic for long-term investors as a sweep-the-lows event is becoming more self-fulfilling. Key levels have been identified.
Ethereum price is setting up for a correction
Ethereum price displays concerning on-chain metrics that investors should be aware of. According to Santiment’s 30-Day Active Addresses Indicator, more than 750,000 addresses have become active in October. Statistically, whenever the indicator begins ramping higher, a sharp correction in price occurs shortly after.
Santiment’s 30-Day Active Addresses Indicator
Ethereum price currently auctions at $1,299. The bears have successfully breached the 8-day exponential moving average (EMA). The Relative Strength Index also forged the last rejection in ideal territory for a powerful downtrend. If market conditions are genuinely bearish the Ethereum price will continue stair-stepping south towards $1,220 and lower.
ETH/USDT 8-Hour Chart
The bulls will need to break above both the 8-day EMA and 21-day Simple Moving Average (SMA) at $1,330 to create an alternative bullish scenario. If the hurdles are breached, a reasonable bullish scenario would be a retest of the October high near $1,380 Such a move would result in a 7% increase from the current Ethereum price.
In the following video, our analysts deep dive into the price action of Ethereum, analyzing key levels of interest in the market. -FXStreet Team
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