Ethereum (ETH) Price Prediction: What's Next After Last Week's Setback?

Ethereum [ETH] has witnessed a major setback last week as its price dropped in double digits. However, the token has shown signs of recovery in the last 24 hours.

After a double-digit price drop last week, Ethereum [ETH] has shown signs of recovery in the last 24 hours. CoinMarketCap's data showed that ETH was down by more than 24% over the last seven days. At press time, ETH was trading at $2,514.29 with a market capitalization of over $302 billion.

Meanwhile, a wallet belonging to LonglingCapital, as noted by Lookonchain, transferred 20,000 ETH, valued at over $50.3 million, to wallet “0x3478” after remaining largely inactive for nearly two years.

As per our analysis of Glassnode's data, Ethereum's NVT ratio dropped sharply. Whenever the metric drops, it suggests that an asset is undervalued, indicating that the chances of a price increase are high.

Our analysis of Santiment's data showed that ETH's supply on exchanges increased over the last seven days. This indicated that selling pressure was high.

Its supply outside of exchanges was flat, indicating that investors were not actively buying ETH at press time. However, whales were buying ETH, which was evident from the rise in its supply held by top addresses.

We took a look at ETH's daily chart to better understand what to expect from it. As per our analysis, the technical indicator MACD displayed a bearish advantage in the market.

Both the Relative Strength Index (RSI) and Money Flow Index (MI) were in the oversold zone. These indicators suggested that there were high chances of ETH to recover from its losses.

Additionally, the Chaikin Money Flow (CMF) registered an uptick, further indicating that ETH's price might increase in the coming days.

Our analysis of Hyblock capital's data revealed that if ETH turns bullish, then it might soon reclaim the $3.3k mark. This was the case as liquidation would rise at the level, which often results in price corrections.

However, if the bears continue to control the mallet, then it won’t be surprising to witness ETH dropping to $2k in the coming days.