Ethereum Price Retreats on Boxing Day as Santa Claus Rally Gains Are Erased

Ethereum (ETH) token fell to $3,340, down by over 5.6% from its highest level this week.

After a brief rally that saw Ethereum (ETH) token reach highs of $4,095 this week, the second-largest crypto crashed on Boxing Day, erasing the gains made during the Santa Claus rally.

ETH price fell to $3,340, down by over 5.6% from its highest level this week. This retreat happened as a sea of red spread in the crypto industry, with the market cap of all coins falling to $3.29 million.

The crypto crashed in a low-volume environment as most traders remained away from the market during the Christmas holiday. CoinGecko data shows that the 24-hour volume was $17.5 billion, down from $24 billion a day earlier. This marked its lowest volume in over a month.

ETH futures open interest also continued falling, reaching a low of $26 billion, down from this month’s high of $28 billion. Falling open interest is a sign of falling demand among futures traders.

However, there are some positive signs in the Ethereum market. Data by DeFi Llama shows that the total value locked in its decentralized finance (DeFi) ecosystem rose by 5.50% in the last 30 days. In comparison, Solana (SOL) and Tron (TRX)’s TVL dropped by over 3% in that period.

The active addresses ratio has continued to rise in the past few months. It rose from the October low of 0.37% to 0.57%, its highest level since August. This important data point looks at the ratio of active addresses to balances with balances. Total active Ethereum addresses rose to over 927,000.

More technical data shows that Ethereum’s Market Value to Realized Value score rose by 2.35% in the last 24 hours to 1.64. This important number looks at whether a crypto asset is overvalued or undervalued. An MVRVA figure of less than 3.8 indicates that an asset is relatively undervalued.

ETH price analysis: A bearish breakout is on the cards

The daily chart shows that the ETH price formed a small double-top pattern at $4,095 and then made a strong bearish breakout. It then rebounded and retested the pattern’s neckline at $3,500, which also marks its lowest swing on December 3.

ETH formed a small doji candlestick pattern on Christmas day. A doji is made up of a small body and long and upper shadows and is usually a bearish sign. It also formed a bearish flag chart pattern.

The coin will likely have a bearish breakout and reach the psychological point at $3,000, which is down by 10% below the current level.

The post Ethereum price crashed on Boxing Day, erasing gains from Santa Claus rally appeared first on Currency.com.