Funds holder data provides valuable insights into where Ethereum can prevent its downward trend. Two network metrics show that in recent weeks, the selling pressure behind ETH has increased, but has not eased.
Ethereum (ETH) bulls fell into trouble earlier this month after failing to hold the demand zone at $3.6 million.
The range of $3600 to $3650 was a resistance in March and the first half of April, but was broken through and turned into support in late May.
The hype around Ethereum ETF was in July, but with Bitcoin (BTC) facing selling pressure from miners and Mt. Gox, as well as a general lack of demand, Ethereum bulls may face a tough battle.
It is expected that the price will fall to the next support zone, but where might the pullback stop?
Key support and resistance zones
AMBCrypto observed that price data from IntoTheBlock shows that a large amount of ETH, totaling 2.28 million, was bought in the range of $2970 to $3171.
As the price approaches this level, the number of coin holders will increase, making it difficult to differentiate this area.
Similarly, any price rebound will struggle to rise above $3.5 million, as many holders will be close to breakeven at that price and will seek to sell out of fear.
Therefore, the levels of $3.1 million and $3.5 million are worth noting in the coming weeks.
Active address count reflects network health positively
Despite the price drop, the daily active addresses in June are still on the rise. The increase in active addresses is a good sign of network usage. But deviations in other indicators are tolerable.
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In the past month, the average age of the coin has dropped sharply. This shows the movement of tokens in the network and distribution. The MVRV ratio has also dropped below zero, highlighting holders’ losses.
Taken together, these are strong signs of further bearishness. The MCA must start to rise to suggest a price recovery.
