Ethereum remains vulnerable to more plummets despite losing more than 23% over the past seven days to explore the $1.261 value area. Such possibilities arise as the leading altcoin witness increased deviation in on-chain withdrawals.
CryptoQuant’s November 11 Onchain Edge post assessed the withdrawing transactions. It also indicated that Ethereum investors might anticipate more price declines because of such actions. The publication confirmed a higher probability.
Moreover, corrections at the current level weren’t a pessimistic signal for ETH in the longer term. Meanwhile, the CryptoQuant analysts backed his argument, revealing that similar indications happened in May & November last year. The recent one emerged in May this year.
The on-chain data platform Glassnode showed ETH’s inflow volume plunged substantially since November 9. That emerged amidst the crisis that plagued the crypto space since the FTX bankruptcy. The declined exchange deposits implied that more market players navigated other ways to hold their Ether.
Though this data may confirm less selling momentum, massive less activity could have triggered this slump. Besides the faded interest in exchange trading, the derivatives marketplace revealed similar tendencies. Moreover, Glassnode’s data confirmed massive negative for futures volume over the past 24hrs in all exchanges.
While publishing this news, Binance futures volume presented an $8.31B drop in the mentioned timeframe. That confirmed one of the deteriorated interests since this year began. This on-chain state should improve in the upcoming days to avoid more downward tendencies.
Meanwhile, Santiment confirmed massive possibilities for such outcomes. While publishing this content, the analytics site confirmed that the 30d MVRV Ratio stood at -7.723^%. That shows investors have recently endured losses.
Moreover, profits accumulated on exchanges earlier remained in ruins. Also, the Market Value-Realized Value Z-score remained negative at around -0.0263. That means the realized cap may exceed the undiluted market cap.
Prepare for Further Rip Ups
Nevertheless, the EMA confirmed room for corrections as the 50 Exponential Moving Average moved toward levels beyond the 20 Exponential Moving Average. An eventual crossover would see sellers establishing their regime in the market, pushing prices beneath $1,200.
Meanwhile, the 200 Exponential Moving Average showed the correction would finally welcome price revivals in the long to mid-term. Nonetheless, investors should remain cautious before presuming declines remain inevitable.