Ethereum's Rise is Fake... 'Delayed Decline' Signal Triggered

▲ Ethereum (ETH) decline/ChatGPT generated image

Ethereum (ETH) continues its rebound. However, an analysis suggests that on-chain indicators point to a structure where the price should decline further.

NewsBTC reported on May 2nd that as the divergence between on-chain indicators and price widens, warnings are emerging that “the price should have already gone down.” According to the report, this indicator compares price levels against network activity. Currently, Ethereum's price is higher than the appropriate level indicated by the metric. In past cases, such divergences were often resolved not by a rise, but by a price decline.

The recent upward trend itself was not denied. Ethereum has risen by approximately 25% since March, creating a rebound, but analysts explained that “the formation of a bottom is not entirely complete.”

The technical trend is also limited. Ethereum has recovered its 50-week moving average on a weekly basis, but it is moving below the 100-week and 200-week moving averages, hitting overhead resistance. The key range was suggested to be between $2,200 and $2,300. This range was a past support line but now acts as resistance and is considered a turning point that determines whether the trend will reverse.

Trading volume also appeared to be at a level that made it difficult to be confident about a rise. After the rebound from the low, strong additional buying did not continue, indicating limited market participation.

For an upward movement, breaking above $2,600 was presented as a key condition. Conversely, if $2,200 cannot be maintained, the $1,900 range was identified as the next support line.

As long as the divergence between on-chain indicators and price persists, the market continues to face pressure to balance through downward adjustments rather than upward movements.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*