Ethereum, The 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, and currently, Ethereum's price is higher than the appropriate level indicated by the metric. In past cases, such divergences were often resolved by a price decline rather than a rise.

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

The technical trend also remains limited. Ethereum recovered the 50-week moving average on a weekly basis but is moving below the 100-week and 200-week moving averages, encountering overhead resistance. The key range of $2,200 to $2,300 was suggested. This range was a past support level but now acts as resistance, and is considered a turning point that will determine whether the trend reverses.

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

On the upside, whether $2,600 is breached was presented as a key condition. Conversely, if $2,200 cannot be maintained, the $1,900 range was identified as the next support level.

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

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