Ethereum: 1.6 million coins moved; it means THIS for your ETH holdings

• Ethereum’s on-chain metric flashed a bullish signal on the charts
• Nevertheless, key technical indicators prompt that the coin’s value might fall additional.

Ethereum’s [ETH] Age Consumed metric climbed to a one-month excessive on 18 April. This rally was adopted by a slight uptick within the altcoin’s worth too, suggesting {that a} native backside might need been hit, in line with Santiment’s knowledge. 

Supply: Santiment

Is the underside in or not?

To evaluate whether or not a value backside is in, you will need to assess ETH’s Age Consumed metric. This metric tracks the motion of its long-held idle cash. It’s considered an excellent marker for native tops and bottoms as a result of long-term holders not often transfer their dormant cash round. Due to this fact, every time this occurs, it typically ends in main shifts in market traits. 

At any time when this metric spikes, it signifies {that a} vital variety of beforehand held idle tokens have begun to vary palms. It hints at a powerful shift within the habits of long-term holders. 

Then again, when an asset’s Age Consumed dips, it signifies that long-held cash stay in pockets addresses with out being traded.  

In actual fact, in line with Santiment, Ethereum’s Age Consumed rose to a excessive of 1.6 million on 18 April. Though ETH’s value briefly fell beneath $3,000 after this, it shortly rebounded to change palms at $3,059 at press time. 

Since 18 April, the crypto’s worth has risen by 3%, in line with CoinMarketCap.  

Why warning is critical

Whereas ETH’s Age Consumed hinted at the opportunity of an uptrend, an evaluation of the coin’s value actions on the 1-day chart revealed that the short-term outlook stays considerably bearish.

Underlining that bearish energy exceeded bullish exercise in ETH’s market, its optimistic directional index (inexperienced) rested beneath its unfavorable index (crimson).

Is your portfolio inexperienced? Verify the Ethereum Revenue Calculator

When these strains of an asset’s Directional Motion Index (DMI) are positioned this fashion, it’s a signal that the market pattern is bearish and the value is beneath vital stress from the sellers. 

Moreover, readings from the ETH market’s shifting common convergence/divergence (MACD) indicator confirmed the prevailing bearish pattern, with the MACD line beneath its sign and 0 strains. 

Supply: ETH/USDT on TradingView

When these strains are positioned this fashion, it signifies a powerful bearish pattern available in the market and confirms the opportunity of an additional decline in an asset’s value. 

Market members typically see it as a sign to exit lengthy positions and take brief ones. Merely put, it may be a tough time to navigate Ethereum’s market proper now.