Ethereum prints a massive bearish pattern
The 12-hour chart illustrates the formation of a rising wedge. It is a bearish pattern that tends to form in the middle of an uptrend. A
rising wedge helps traders identify instances when the asset's uptrend
is weakening. Simultaneously, bears are preparing to take control of the
joystick. A breakdown equal to the height of the wedge's back is
expected when the price slices through the lower trendline.
The TD Sequential indicator has recently presented a bearish signal. The call to sell formed in a red nine candlestick and confirms the
weakening uptrend. If validated, Ethereum could fall in one to four
12-hour candles.
According to Santiment's on-chain data, Ethereum is setting the pace for a downswing. For example, the MVRV has started to retreat after
hitting 10.9%, the highest point in March. The MVRV measures the
average profit or loss of the holders of ETH tokens that were transacted
over the previous 30-days and based on the price when each of those
tokens last moved.
An MVRV value higher than one means holders are in profit and are likely to sell. On the flip side, a value of zero or less shows
investors are at a loss and unlikely to sell. With an MVRV above 10%,
Ethereum is bound for a retreat.Ethereum's network growth has also been
on a downward spiral, according to Santiment. The Network growth metric
reveals a significant decline in the number of addresses joining the
network daily.
Newly-created addresses made a monthly high of approximately 178,000 on February 20. At the time of writing, these addresses stand at
roughly 144,400, representing a 19.1% drop. Declining network growth is
a bearish signal and shows that the network is losing traction with
time. Ethereum may invalidate the downtrend if the Moving Average
Convergence Divergence (MACD) holds above the mean line. Moreover, the
MACD line (blue) must hold on top of the signal line to ensure market
stability. Action past $1,800 would also trigger massive buy orders as
investors speculate Ether rising above $2,000.
