Ethereum’s performance saw some sluggish turn lately as the leading alt failed to record any substantial price shifts. Ethereum has presented deteriorated actions since the much-anticipated Merge, succumbing to broad market weakness.
Moreover, the development count indicated potential downsides in the upcoming days. For example, Glassnode’s data shows Ethereum net exchange outflow plummeted considerably and dipped to 1-month lows of 9,509.190 $ETH.
That represented a colossal bear sign as a decline in exchange outflow usually confirmed heightened selling pressure. According to Coinmarketcap’s data, ETH traded around $1,292.00 during this publication, with a $158,349,008,858 market cap.
Surprisingly, multiple analysts debated their views about ETH’s bear market. Besides that, assessing the token’s metrics painted a somewhat ugly picture.
Investors, Prepare for Plummets
CryptoQuant’s analyst and author Crypto Sunmoon recently posted about the potential of extended declines. He highlighted that increased exchange inflows in 2020 – 2021 pushed ETH prices rapidly. The surging exchange inflow confirmed a near-term & long-term low. Furthermore, Sunmoon said Ethereum lacked short-term bullish signals.
Surprisingly, ETH’s on-chain metrics confirmed similar outcomes in the upcoming days. Though Ethereum’s MVRV (Market Value–Realize Value) Ratio recorded a brief upswing, it remained substantially beneath September zones – a bearish sign.
Moreover, ETH’s development activity declines within the previous week, representing a red flag for the blockchain. Furthermore, Ethereum’s volume followed suit, recording a downtrend.
Despite the altcoin’s unpleasant state, the only respite came from the ETH non-fungible token (NFT) marketplace. While NFT 24hr trading volume plummeted significantly, the decline in daily traders stayed extremely low. That confirmed a loyal client base of nearly 40K per day.
Thus, Ethereum’s NFT sector didn’t suffer much from the price plunges. The mentioned development appeared visible from Santiment’s chart. The data showed ETH’s overall NFT trade volume (in USD) recorded a surge within the past few days, revealing a positive sign.
Considering the on-chain and development metrics, market players can expect a bullish rally from ETH soon. Moreover, heat within the token’s NFT sector meant chances for Ethereum to shift the narrative in its upside favor.
Feel free to share this article.