For most of last week, Ethereum’s (ETH) price traded below $2,000. However, as a new week begins, ETH has risen above the threshold, suggesting the previous decline could be over.
However, that seems like an early call that may not turn out to be true. Several indicators reveal that while Ethereum’s price could display strength, it is unlikely to be for a long period.
One indicator supporting this bias is the divergence in the Ethereum Price Daily Active Addresses (DAA). The DAA measures the level of user interaction with a cryptocurrency.
When combined with the price, the divergence shows whether user engagement can drive the market value higher. A positive reading of the price DAA divergence indicates rising user participation.
If sustained, it typically helps the price trade higher. In Ethereum’s case, Santiment data shows that the price DAA divergence has dropped to -35.87%.
This reading indicates a drop in the number of transactions involving ETH. Should this decline continue, Ethereum’s price might find it challenging to keep climbing in the short term.
Furthermore, other indicators, like the active addresses by profitability, also seem to agree with this. This profitability metric shows the number of active users holding ETH in losses or profits.
The higher the volume in profits, the stronger the support. On the other hand, the larger the cluster in losses, the stronger the resistance.
According to IntoTheBlock data, the major resistance for ETH lies between $2,213 and $2,584. At this price level, 21,460 addresses hold over 65 million coins.
Since this volume is higher than those in profits, Ethereum’s price might not find it easy to breach the $2,200 level. If this happens, the supply wall around this region could pull the price back, and a correction toward $1,850 could be waiting.
ETH Active Addresses By Profitability | Credit: IntoTheBlock
ETH Price to Lose $2K Again
From a technical standpoint, Ethereum’s price still trades within a falling channel. Based on the daily chart, the cryptocurrency is yet to break above the upper trendline of the bearish pattern.
The Relative Strength Index (RSI) reading has increased during this setup. However, the RSI, which measures momentum, has yet to see its reading breach the neutral line.
If this trend remains the same, ETH’s price might struggle to reach a higher value, and its value might decline to $1,758.
On the flip side, if ETH breaks above the upper trendline of the falling channel, this prediction might not come to pass.
In that case, the value might rise above the 0.236 Fibonacci pullback point and climb toward $2,654.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
