Ethereum's price has surged past $2,500, marking a significant milestone since early October. However, BeInCrypto's analysis highlights potential challenges, despite the rising market optimism.
The recent 6% price increase comes alongside a 90% rise in trading volume. Yet, on-chain metrics reveal a 56% drop in Ethereum's Coins Holding Time, suggesting ongoing investor selling despite the price boost.
If this decline continues, ETH's value might face short-term pressure, with a high Network Value to Transaction (NVT) ratio indicating potential overvaluation relative to market conditions.
The Ethereum NVT ratio's rise over recent days emphasizes this concern, highlighting the risk of price corrections given the current dynamics.
Technical indicators, such as the Average True Range (ATR), remain flat, signaling low volatility and potential price reversals or consolidation. This suggests ETH might drop to $2,345 if bearish trends persist.
However, if bulls maintain control, Ethereum's rally could surpass $2,600, potentially reaching $2,983, underscoring the fluid nature of its market trajectory.
