Ethereum retracted from levels well above the long-term resistance at $2300. The decline in active addresses indicated less market demand for ETH. This decline means that Ethereum investors have reasons to worry.

Key metrics suggest the market may indicate increased selling pressure as Ethereum (ETH) retraces its previous December gains. On-chain indicators show an increasing influence of selling forces prevailing on the one-day chart’s bullish trend and market structure.

Ethereum’s deflationary nature continues to be a source of confidence for long-term holders. However, estimates of a declining ETH supply cast doubt on the mood of the market in the short term and raise the prospect of a decline below $2000 or less.

Can the $2130 Support Level Endure?

Ethereum Investors Have Reasons to Worry

A critical query is raised: will the $2130 support last? Before the bulls took back control, there was a three-week retracement period in early November after ETH had risen to $2130. Ethereum surpassed regional highs at $2130, securing the $2000 level as support.

During the climb, ETH stabilized at about $2030 before making a solid move northwards, indicated in cyan. This region, near the $2000 threshold, is considered a strong support zone.

The recent higher low is significant at $2019; a violation might turn the one-day market structure negative. The RSI is currently slightly above the neutral 50, suggesting bullish momentum.

Ethereum’s price fluctuations in this complex circumstance call for a thorough evaluation of the possible difficulties brought on by heightened selling pressure and the upcoming crucial support levels.

Warning Signs from Key Metrics For Ethereum Investors

Ethereum Investors Have Reasons to Worry

While the On-Balance-Volume (OBV) displayed an overall uptrend, recently, there’s been a dip, raising red flags. Several metrics contribute to this sense of caution:

Age-Consumed Metric: Notable jumps throughout the last two weeks, especially at $2340 on December 10th, indicated increased activity and possible selling pressure.

Mean Coin Age: A few days later, the mean coin age abruptly decreased after a vigorous climb. This indicates increased selling pressure and a significant shift in ETH across addresses.

Price Movement: Due to the increased selling pressure, Ethereum prices dropped and are now about $2100.

Active Addresses Count: Interestingly, within the previous week, the count of dynamic addresses started to decline, generally suggesting a drop in network activity.

MVRV Ratio: As investors with successful ETH positions decided to sell their holdings, the MVRV ratio reached a fresh high and indicated profit-taking.

In conclusion, these indicators point to issues that should worry long-term investors and emphasize the necessity of exercising caution while responding to the changing dynamics of the Ethereum market.