- Ethereum price declined below the $2,400 level in the market-wide crypto bloodbath.
- Ethereum faces challenges on its path to recovery as miner revenue hits nine-month low, increasing selling pressure.
- Analysts predict a further decline in Ethereum price, and identify key bearish trend formation.
Analysts have identified a key metric, "miner revenue," that hit a nine-month low recently, and contributed to rising selling pressure on Ethereum. The altcoin is currently in a bearish trend, and analysts believe ETH could plummet lower.
Ethereum price struggles to recover after major decline
Ethereum price recently suffered a massive drop from the $2,700 zone, diving below $2,400.
A key metric that recently hit a nine-month low is "miner revenue." The revenue of miners on the Ethereum network recently plummeted to $1,476,333.1. The previous low was observed in March 2021. A reduction in miners' revenue contributes to a rise in selling pressure on the altcoin.
Miners sell the asset to cover their operating costs, therefore contributing to a rise in exchange reserves and selling pressure on the altcoin.
Based on data from the crypto intelligence platform Glassnode, there is an increase in turbulence for Ethereum. A delay in the "Merge," the transition from Proof-of-Work to Proof-of-Stake, has led to a dominance of negative market sentiment for Ethereum. The Ethereum Foundation launched a roadmap for the event to garner support from the community.
The number of addresses in loss now stands at 24.5 million, which is the highest level since May 2020.
Proponents believe a combination of rising selling pressure from miners, high number of addresses in loss and negative sentiment among investors are the key factors influencing Ethereum's recovery.
Analysts believe Ethereum price needs to close above $2,420 support level to kickstart its recovery from the recent pullback. A sustained daily close below this critical level could continue Ethereum's downtrend.
@IAmCryptoWolf, leading crypto analyst and trader, evaluated the Ethereum price trend and noted that the ETH price broke key diagonal support at $2,500. The analyst argues it is challenging for bulls to reclaim the support, and there is a bulk of buy orders down to $1,800 and $1,900 level. These levels are considered significant support for Ethereum.
The analyst believes a bounce above $2,700 would imply a bullish trend reversal in Ethereum.
$ETH broke key diagonal support, things don't look good for bulls.
— Wolf (@IamCryptoWolf) May 9, 2022
Even if we bounce here, it will be tough to reclaim that diagonal support.
I have placed fat buy orders down to 1.8k - 1.9k, which i think at this point is where major support is.
Above 2.7k i'll be bull again. pic.twitter.com/9dnFmpM72v
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