Ethereum (ETH) price retreated on Wednesday, breaking a two-day winning streak

Ethereum price retreated on Wednesday, breaking a two-day winning streak as resistance persists at the $1900 mark. The decline by ETH was a reflection of the happenings in the broader crypto market which is under pressure as US reciprocal tariffs enter into force.

Ethereum price retreated on Wednesday, breaking a two-day winning streak as resistance persists at the $1,900 mark. The decline by ETH was a reflection of the happenings in the broader crypto market which is under pressure as US reciprocal tariffs enter into force.

Cryptocurrencies have borne the brunt of risk aversion in financial markets, with ETH price losing 25% in the last month. However, Ethereum’s troubles are asset-specific to a significant extent.

ETH price has declined by a disproportionately bigger margin. For example, while ETH is down by 43% year-to-date, its altcoin peer BNB Coin is at -14%, Solana is down by 33%, ADA is at -19% and XRP is up by 2.2%.

Furthermore, Coinglass data shows that Ethereum’s Futures Open Interest (OI) dropped to $20.68 billion on April 1 from all-time highs of $32.27 billion recorded on January 24, 2024. That signals declining investor confidence in the medium and long-term performance of the asset, which will add downward pressure on Ethereum price.

In addition, Ethereum spot ETF recorded $3.6 million in net outflows on April 1, interrupting the successive gains recorded in the previous two sessions.

On the positive side, Ethereum’s Market Value to Realized Value (MVRV) ratio has crossed below the 1 threshold as per IntoTheBlock data. As seen on the chart below the reading at 0.88, ETH is in an undervalued asset, offering good buying opportunities. Therefore, being in this zone could trigger an accumulation, leading to a price recovery.

.

The post Ethereum price offers good buying opportunities at undervalued levels appeared first on CCNR.com.