- Ethereum’s ETH Daily Active Addresses (DAA) divergence has considerably declined, the same as the Cumulative Volume Delta (CVD), which suggests that there could be a pullback.
- However, multiple analysts have hinted that ETH is in the early phase of its recovery, and months later, the asset could hit $15k.
Ethereum (ETH) recently breached a multiple-month resistance level of $4000 after consolidating within an ascending triangle for three years. However, the asset had marginally lost 0.8% of its value at press time to plunge below this level while maintaining its weekly gains of 7% and monthly gains of 22%. Even so, analysts have uncovered multiple bearish indicators that could rub off these gains in the coming days or weeks.
Ethereum’s Bearish Indicators
Analyzing the on-chain data of Ethereum, we discovered that the Daily Active Addresses (DAA) divergence has considerably declined to -64.17%. According to our analysts, this metric assesses the corresponding increase in user engagement when an asset records an upsurge. Based on the reading, the ETH’s parabolic surge is not much supported by network activities, which implies that the price could pull back.
Another metric that suggests a temporal pullback of ETH is the Holding Time. According to IntoTheBlock’s data, the Holding Time for Ethereum has been decreasing since December 6. Without a change in trend, ETH could decline below the current price of $3,938.
In addition to the above, the Cumulative Volume Delta (CVD) – a metric used to measure buying and selling pressure in the market has also fallen into the negative zone. This suggests that selling pressure has outweighed the buying pressure in the market. Meanwhile, renowned crypto analyst Benjamin Cowen has disclosed that the current position of the ETH/BTC pair is in an early recovery phase.
Delving into the Thesis of Cowen and Other Analysts
Analyzing Cowen’s thesis, we observed that his prediction was based on the pair’s historical tendencies. According to him, ETH/BTC mainly gains momentum in December and January. If the momentum slows down in January, there could be a “sweep of prior lows” at 0.03187 and 0.03 for the pair. However, according to the analysts, there could be significant gains in six to nine months.
For an anonymous crypto trader identified as Venturefounder, ETH could hit $15,937 by May 2025.
Fascinatingly, this level of price point could send the market capitalization to $1 trillion.
Ethereum is likely to repeat this impulsive breakout it did between 2016 and 2017 to shoot to new ATH. Price Target: $15,937 by May 2025.
Another independent analyst, identified as Honey, has spotted a golden cross formation on the 1-day chart. Since this is mostly associated with an impending breakout, Honey believes that ETH is setting the ground for what he termed as a “giga pump”. This aligns with our recent publication which suggests that the asset could double soon.
Amid the backdrop of this price behavior, the US spot ETH Exchange Traded Funds (ETFs) have been doing well as they all moved above the $1 billion line for the first time recently. Meanwhile, the BlackRock Ethereum ETF (ETHA) has been dominating the market as it recently recorded its highest-ever daily inflow of $292 million. According to our report, ETHA recorded $800 million in inflows in five consecutive trading sessions.
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