The article discusses Ethereum's (ETH) current price struggles and the potential for a prolonged bearish period if critical support levels fail. Key metrics, such as the Market Value to Realized Value (MVRV) Long/Short Difference, indicate that long-term holders are exiting profitable positions. This trend could lead to a negative reading, similar to February 2022, which preceded a year-long bear market for cryptocurrencies.
Another concerning metric is the Balance by Time Held, which shows an increase in short-term held ETH. This indicates that some holders are losing confidence in ETH's potential, possibly signaling a shift in market sentiment. The Moving Average Convergence Divergence (MACD) on the daily timeframe suggests continued bearish momentum for ETH, with a drop below $2,000 likely unless consistent buying pressure stabilizes the price.
Overall, the article underscores the importance of holding critical support levels to prevent a significant downturn in ETH's market performance. Consistent buying pressure could help stabilize the price and potentially invalidate the exit from the bull market.
