- ETH supply on exchanges has increased in recent days
- The indicators reveal that ETH is undervalued, suggesting a price surge on the charts.
It's only been two days since the highly anticipated spot launched. Ethereum [ETH] The ETF was approved by the US Securities and Exchange Commission (SEC). However, the outcome of this approval did not turn out as expected, and ETH quickly became bearish on the charts. Therefore, it is worth taking a closer look at what is going on.
Ethereum ETF Approval Fails
AMBCrypto report Before US SEC Approves Eight Spot Ethereum Applications [ETH] On May 23, regulators approved Form 19b-4 ETF applications filed by BlackRock, Fidelity, Grayscale, Bitwise, VanEck, ARK, Invesco Galaxy and Franklin Templeton.
Well, many expected the price of ETH to skyrocket after that, but the opposite happened. CoinMarketCapETH’s week-long bull run ended with its price dropping by about 2% over the past 24 hours. At the time of writing, ETH’s market cap was over $452 billion and it was trading at $3,766.04.
Ali, a popular crypto analyst, recently Tweet He said there could be several reasons behind this bearish price movement. Similarly, ETH saw a significant sell-off shortly after its approval, which could have been a profit-taking move by investors. For example, Jeffrey Wilke, one of the co-founders of Ethereum, transferred 10,000 ETH, worth about $37.38 million.
Additionally, supply on the altcoin king’s exchanges has also surged, further confirming the fact that selling pressure on the token is growing. Separately, a key indicator, TD Sequential, also issued a sell signal on the ETH price chart.
However, the bearish price trend could change under certain conditions. According to Ali, ETH’s resistance levels lie between $3,940 and $4,054. According to the tweet, the bearish trend could end if ETH records a daily candle and closes above $4,170.
Will the bear let go?
AMBCrypto then analyzed ETH's on-chain metrics to see if they supported the possibility of ETH breaking above the aforementioned resistance zone. According to an analysis of Glassnode's data, ETH's NVT ratio recorded a sharp drop. The drop in the metric means the asset is undervalued, suggesting a rise in price on the charts.
Source: Glassnode
However, ETH Fear and Greed Index At the time of writing, it is showing a reading of 67%, indicating that the market is in the “greedy” phase. When this indicator reaches that level, it indicates that a price correction is likely. AMBCrypto checked the daily chart of Ethereum to get a better idea of what to expect.
Is your portfolio green? ETH Profit Calculator
ETH’s Chaikin Money Flow (CMF) has been observed trending sideways in the past few days, and a similar trend was also confirmed on the Relative Strength Index (RSI) chart.
These indicators suggest that investors may experience some slower days ahead.
Source: TradingView
