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.
#Ethereum #CryptoMarket #ETHPrice #Blockchain #CryptoTrading #EthereumRecovery
