Ethereum (ETH) is positioning itself for a potential price rebound following a recent dip that took it below $2,600. Just days ago, ETH appeared ready to push toward the $3,000 mark. However, as October drew to a close, the momentum shifted, leaving investors curious about its next move. Here’s a closer look at on-chain metrics that suggest Ethereum could reverse its downward trend.
Bearish Sentiment on Ethereum Eases
According to CryptoQuant data, Ethereum’s recent price decline brought a drop in the Taker Buy/Sell Ratio—a metric calculated as the buy volume divided by the sell volume in perpetual swap trades. This ratio indicates sentiment: values above 1 signal bullishness, while values below 1 indicate a bearish outlook. On October 31, the Taker Buy/Sell Ratio stood at 0.84, signaling bearish sentiment.
However, as of today, this ratio is approaching 1, suggesting a potential sentiment shift. If this upward trend in the Taker Buy/Sell Ratio continues, ETH’s price may follow suit, possibly reaching $2,800.
MVRV Ratio Indicates Potential Rebound
Further supporting the recovery potential is Ethereum’s 30-day Market Value to Realized Value (MVRV) ratio, which compares an asset’s market value to its realized value, revealing market tops and bottoms. A high MVRV often suggests an asset might be overvalued, while a low ratio indicates undervaluation, pointing to potential price bottoms.
Currently, Ethereum’s MVRV ratio has turned positive—a trend last seen in mid-October, coinciding with ETH’s price surge above $2,700. If the MVRV ratio continues to rise, it could indicate a similar positive price movement for ETH.
Price Prediction: Potential Rebound for ETH
On the daily chart, Ethereum’s price is close to dropping below $2,500. If this decline occurs, support around $2,345 might help stabilize the altcoin. In a rebound scenario, ETH would face resistance at $2,790. Additionally, the Balance of Power (BoP) indicator, which measures the strength of bulls against bears, shows rising values. A sustained increase in the BoP could support ETH’s move toward $2,824.
In an optimistic scenario, ETH could climb as high as $3,262. However, a decline below the key support could invalidate this outlook, potentially leading to a drop near $2,115.
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A.k.a – alpha girl. Vinita is the founder of Alphachaincrypto. An English Lit Majors, Vinita bumped into Web3 in 2020 only to realise that tech was her calling. Later, Mathreja worked for some notable brands like Near Education, Biconomy, CoinDCX and top of the line crypto start ups.
