Assessing whether Ethereum will breach $1600

• Ethereum was down by more than 2% in the last 24 hours. 
• Social volume remained high, but selling pressure was increasing.

Ethereum’s [ETH] price witnessed another price correction, pushing its value down under the $1,600 mark once again. However, there was hope for a new bull rally as a trendline revealed that the king of altcoins’ price might rise in the days to follow.

Read Ethereum’s [ETH] Price Prediction 2023-24

Notably, ETH/BTC hit a target of 0.055, as its price was testing the long-term trendline support zone. If the price remains above the line, investors can expect ETH’s value to pump.

Ethereum’s price is at a critical level

After a pump on 16 October, Ethereum’s price underwent a correction. As per CoinMarketCap, in just the last 24 hours alone, ETH’s price dropped by more than 2%. At press time, it was trading at $1,549.76 with a market capitalization of over $186 billion.

Even as the token’s price sank, it also reached a critical level, according to Mag, a popular crypto trader and analyst.

$ETH ✍️

ETH/BTC finally hit my target of 0.055, price it testing the long term trendline support zone!

Expecting a strong bounce here.. https://t.co/PRIJAL4fIG pic.twitter.com/BSbZQSo9Ca

— Mags (@thescalpingpro) October 18, 2023

As per the tweet, ETH/BTC’s price was resting on a long-term support trendline. If the price managed to remain above it, then investors might expect ETH’s value to register a surge in the days to follow.

Therefore, a look at ETH’s metrics gave a better understanding of what the future might hold. According to CryptoQuant,

ETH’s net deposits on exchanges are high compared to the 7-day average, meaning that selling pressure on the token was high. Its taker-buy-sell ratio revealed that selling sentiment was dominant even in the derivatives market.

However, Santiment’s data told a different story, as Ethereum’s Supply outside of Exchanges flipped its Supply on Exchanges, meaning that investors were accumulating more tokens.

Source: Santiment

Are investors actually selling Ethereum?

CryptoQuant’s data also revealed that while ETH’s exchange netflow rose, its Coinbase premium turned green. This pointed out that US investors’ buying pressure was relatively strong on Coinbase. ETH’s Social Volume also remained high, reflecting its popularity in the crypto market.

However, its Weighted Sentiment dropped, which was a negative signal. 

Source: Santiment

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ETH’s market indicators also suggested that the bears were leading the market, as evident from its MACD. The Relative Strength Index (RSI) and Chaikin Money Flow (CMF) both registered downticks and were resting way below the neutral mark.

Ethereum’s Money Flow Index (MFI) provided investors with much-needed hope as it went up in the recent past.

Source: TradingView