- Ethereum's price has fallen by nearly 10% in one week.
- Technical analysis suggests a possible short-term recovery, and major indicators indicate a decline in investor interest.
ethereum [ETH] Prices have fallen significantly, down nearly 10% over the past week and 1% over the past day to a 24-hour low of $2,868.
This decline is more pronounced compared to Bitcoin [BTC]despite the current market conditions, managed to break through a notable price mark.
Ethereum's poor market performance is believed to be due to several factors, including large whale activity that caused significant volatility and selling pressure in the market.
Indicators showing that investor interest in Ethereum is declining
Compounding the Ethereum market’s woes is a decline in network activity metrics.
According to AMBCrypto research, glass node dataEthereum active addresses have declined from a peak of 564,868 in late April to 468,548 at the time of writing.
Source: Glassnode
This decline in active addresses paralleled a decline in the number of new addresses, which fell from 196,629 at the beginning of the month to less than 85,000 on May 11th.
These indicators highlight the waning investor interest in Ethereum during this period.
Source: Glassnode
From a technical analysis perspective, Ethereum has broken a key support structure on the daily chart, indicating bearish pressure.
The 4-hour chart reveals that, at the time of writing, liquidity is hovering around $3,200 before a significant drop continues.
This suggested that Ethereum could rise above the $3,000 mark in the short term and then fall back to around the $2,800 level, setting the stage for a potential rally later on. .
Source: TradingView
read ethereum [ETH] Price prediction for 2024-2025
Notably, the deposits into the Ethereum exchange coincide with the reactivation of two Bitcoin wallets that have been dormant for nearly 11 years.
Each of these wallets contains 500 BTC. Liquidated all stock holdingswhich was even worse news for investors.
