Ethereum (ETH) price is noting a minor uptick on the daily chart, but technical data paints a shaky picture of the coin’s short-term trajectory.
Ethereum price, much like the larger cryptocurrency market, was stuck in a rut, apart from the occasional gains from some altcoins. Bitcoin and Ethereum, the top two coins, have more or less maintained a range-bound momentum failing to cross over their immediate resistance marks.
Despite the larger market’s sluggish momentum, Ethereum saw over 2% daily gains in price as the coin traded at $1,316. While the short-term gains provided relief to investors, a true recovery still wasn’t on ETH’s cards.
Short-term relief for Ethereum (ETH) price
Ethereum price has moved in a tight band between the $1,280 and $1,310 price levels for over 10 days now. ETH’s price was testing the upper $1,310 level, which has acted as a key support/resistance since the end of Sep.
On Sunday and Monday, ETH price made a move above the $1,290 and $1,300 short-term resistance levels. Ethereum price established above the 50% Fib retracement level after the decline from $1,340 to $1,260.
ETH price overcame the $1,300 psychological resistance, which is also the 100-hourly simple moving average (SMA). However, trade volumes still maintained low levels as 24-hour trade volume stood at $8.31 billion.
A decent uptick in RSI presented some buying pressure easing in. However, sellers still dominated buyers as RSI trod below the 50 mark.
Slowing network growth
Ethereum investors seemed to be in pain. Indeed, the Ethereum number of addresses in a loss (7D MA) just reached an all-time high of 42,767,065.637.
Additionally, data from Santiment highlighted that network had taken a hit over the last few days as development activity reached six-month low levels.
However, the market-value-to-realized-value (MVRV) ratio (30-day) shows some signs of recovery. Nonetheless, MVRV still reflects how the market value of the coin supply is decreasing relative to the realized value (cost basis).
Lower MVRV values indicated a smaller degree of unrealized profit in the system, which may signal both undervaluation or poor demand dynamics.
With addresses in a loss at a high, a recovery of MVRV can present that some short-term relief might be in sight for ETH HODLers. However, a true recovery could still take some time.
In the near term, the $1,350 resistance could play a crucial role in ETH’s trajectory. However, if ETH price takes a turn for the worse, the $1,280 support could provide some cushion to prices.
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