While publishing this news, Ethereum (ETH) traded at $13,41. Meanwhile, the leading alt ended a 30% fall from its $1,789 September high on September 22. That was contrary to what most market participants anticipated for ETH’s most vital month this year.
Nevertheless, the altcoin was hovering at a massive discount while displaying recovery signals.
Though Ethereum didn’t retest 2022 lows, the 30% fall saw its dropping to mid-July value areas. However, another 30% decline will likely catalyze the year-to-date low retest. Though another crash remained possible, Ethereum’s recent performance showed a near-term bullish retracement.
Feeding Bulls
A 30% fall over the past two weeks was massive enough to draw increased attention and possible accumulations. Ethereum’s exchange outflows recorded a notable surge, representing the highest outflow since mid-June.
Nearly 104,000 $ETH flew from exchanges between September 21 and 22. That equated to approximately $132M in buying momentum. Contrarily, about 18,000 Ethereum entered crypto exchanges in that timeframe. Exchange outflows far outpaced the inflows count, authorizing a massive demand increase.
Ethereum’s 180-day MVRV (Market Value Realized Value) ratio resorted to declines since September 10, when the price slumped.
That showed that most individuals that held Ethereum at that time, especially enthusiasts that purchased pre-merge, remained out of cash. Nevertheless, the same index recorded a brief surge within the past two days.
The September 21 MVRV’s pivot confirmed a surge in demand around the present lows. Also, it highlighted increased outflows from crypto exchanges, according to the exchange inflow vs. outflow metrics.
Ethereum’s indicators and price action also confirmed the near-term bullish anticipations. The token’s 6-hour chart showed a massive bearish candlestick during September 21’s final hours.
The decline pushed ETH’s price lower than the previous day’s low. Despite that, the RSI (Relative Strength Index) recorded a higher low after its peak.
That triggered an RSI to price divergence. That’s a bullish case and might signal Ethereum is ready for bullishness this weekend.
Moreover, Ethereum’s on-chain indexes & the price actions emphasized Ethereum’s near-term bullish possibilities. Enthusiasts should beware that Ethereum was yet oversold, despite the recent dip. Thus, potential declines remain possible.