Ethereum Dips 3.8% but On-Chain Support May Save the Day
Ethereum Struggles with Renewed Selling in November
Ethereum’s price has tumbled into November, experiencing a 3.8% decline over the past 24 hours, with prices dropping to around $3,738. This slump marks the continuation of a rough October that witnessed losses of almost 17%. Despite the market’s anticipation of a rebound, data suggests that holders are increasingly opting for reduced exposure.
Holders Pull Back, But On-Chain Support Remains Strong
The holder accumulation ratio has slipped to 29.79%, its second-lowest level in a month. Historically, similar declines have been followed by significant price drops. For instance, on October 9, the holder accumulation ratio fell to 29.66%, triggering a 14% plunge from $4,370 to $3,750. This current dip may indicate that long-term holders are either trimming their exposure or waiting for more favorable prices.
The Role of On-Chain Support Zones
However, several key indicators suggest the strength of on-chain support. Data from the cost basis distribution heatmap reveals a dense accumulation cluster between $3,649 and $3,686, representing about 1.09 million ETH that were last transacted at these levels. Such high concentrations of recent buying activity often serve as a cushion against price drops, triggering dip-buying interest when sellers briefly gain momentum.
Cost-Basis Heatmap Identifies Strong Support Cluster
The cost basis heatmap offers insights into the price levels where investors have purchased their coins in the past. By examining this data, it becomes clear that areas with dense accumulation activity can serve as strong support zones for Ethereum’s price. In this case, the cluster between $3,649 and $3,686 could limit deeper losses by encouraging sellers to buy back in at discounted prices.
Ascending Triangle Reflects Buyer Resilience
On a daily chart perspective, Ethereum is currently engaged within an ascending triangle formation. This type of structure is indicative of buyer resilience, as despite price pullbacks, there is always a corresponding bounce from the upward-sloping support line. Recent analysis has shown that between October 30 and November 3, the ETH price formed a higher low while the RSI made a lower low, creating what’s known as a hidden bullish divergence.
Relentless Bullish Momentum
The hidden bullish divergence suggests that despite the current decline in Ethereum’s price, there exists persistent momentum behind this dip. If holders maintain their purchasing power around support levels such as $3,679, investors could anticipate a potential rebound towards resistance areas like $3,899 (0.382 Fibonacci). However, if the price falls below $3,679 and creates a daily price close under this level, it would break the ascending trendline and signal the beginning of a deeper correction.
Key Takeaways from the Current Situation
Overall, although Ethereum is experiencing selling pressure in November, ongoing on-chain support and bullish momentum indicators suggest that prices could rebound. Investors will be closely monitoring whether support zones remain intact, as such resilience can fuel further strength in ETH’s price action.
Ethereum Dips 3.8% but On-Chain Support May Save the Day
Ethereum Struggles with Renewed Selling in November
Ethereum’s price has tumbled into November, experiencing a 3.8% decline over the past 24 hours, with prices dropping to around $3,738. This slump marks the continuation of a rough October that witnessed losses of almost 17%. Despite the market’s anticipation of a rebound, data suggests that holders are increasingly opting for reduced exposure.
Holders Pull Back, But On-Chain Support Remains Strong
The holder accumulation ratio has slipped to 29.79%, its second-lowest level in a month. Historically, similar declines have been followed by significant price drops. For instance, on October 9, the holder accumulation ratio fell to 29.66%, triggering a 14% plunge from $4,370 to $3,750. This current dip may indicate that long-term holders are either trimming their exposure or waiting for more favorable prices.
The Role of On-Chain Support Zones
However, several key indicators suggest the strength of on-chain support. Data from the cost basis distribution heatmap reveals a dense accumulation cluster between $3,649 and $3,686, representing about 1.09 million ETH that were last transacted at these levels. Such high concentrations of recent buying activity often serve as a cushion against price drops, triggering dip-buying interest when sellers briefly gain momentum.
Cost-Basis Heatmap Identifies Strong Support Cluster
The cost basis heatmap offers insights into the price levels where investors have purchased their coins in the past. By examining this data, it becomes clear that areas with dense accumulation activity can serve as strong support zones for Ethereum’s price. In this case, the cluster between $3,649 and $3,686 could limit deeper losses by encouraging sellers to buy back in at discounted prices.
Ascending Triangle Reflects Buyer Resilience
On a daily chart perspective, Ethereum is currently engaged within an ascending triangle formation. This type of structure is indicative of buyer resilience, as despite price pullbacks, there is always a corresponding bounce from the upward-sloping support line. Recent analysis has shown that between October 30 and November 3, the ETH price formed a higher low while the RSI made a lower low, creating what’s known as a hidden bullish divergence.
Relentless Bullish Momentum
The hidden bullish divergence suggests that despite the current decline in Ethereum’s price, there exists persistent momentum behind this dip. If holders maintain their purchasing power around support levels such as $3,679, investors could anticipate a potential rebound towards resistance areas like $3,899 (0.382 Fibonacci). However, if the price falls below $3,679 and creates a daily price close under this level, it would break the ascending trendline and signal the beginning of a deeper correction.
Key Takeaways from the Current Situation
Overall, although Ethereum is experiencing selling pressure in November, ongoing on-chain support and bullish momentum indicators suggest that prices could rebound. Investors will be closely monitoring whether support zones remain intact, as such resilience can fuel further strength in ETH’s price action.