Ethereum (ETH) has been caught in a bout of consolidation within the mid-$180 region, which has been largely guided by Bitcoin’s inability to garner any momentum that pushes it away from the lower-$9,000 region, which is where it has been trading for the past several days.
Now, analysts are noting that ETH may be positioned for a retrace towards $170 in the near-term as it also faces an ongoing decline in on-chain volume.
Ethereum Consolidates as Analysts Target a Downside Movement
At the time of writing, Ethereum is trading up 2% at its current price of $185, which marks a slight climb from its recent lows of $177 that were set last week.
It is important to note that Ethereum has been caught in a trading range between roughly $180 and $190 over the past several weeks, which is largely the result of Bitcoin’s bout of consolidation between $9,000 and $9,500.
Regardless of how Bitcoin trades in the near-term, Ethereum may soon incur a downside movement that takes it as low as $170, which is where its “golden fib ratio” currently exists.
The Cryptomist, a popular cryptocurrency analyst on Twitter, explained this possibility in a recent tweet, noting that ETH’s near-term target exists at $176, while its mid-term target exists at $170.
“$ETH Broken down from rising wedge from last month. Fall is not over in my opinion. Next target is 176 at .5 fib level. I do think we will go to golden ratio at .618 fib at $170,” she explained while pointing to the chart seen below.
Broken down from rising wedge from last month
Fall is not over in my opinion
Next target is 176 at .5 fib level
I do think we will go to golden ratio at .618 fib at $170 pic.twitter.com/lF1U2vN9ng
— The Cryptomist (@TheCryptomist) November 1, 2019
ETH On-Chain Volume Declines
One factor that could potential perpetuate any downside movement experienced by ETH in the near-term is the fact that its on-chain volume has been declining as of late, which can make all crypto assets more prone to downside movements.
TokenAnalyst, a popular cryptocurrency analytics group on Twitter, spoke about this in a recent tweet, noting that the cryptocurrency’s on-chain volume has declined nearly 20% over the past 24-hours.
“24H #ETH Network Stats: Price: $181.82 (-0.5%). $ETH On-Chain Volume: $290M (-18.3%). Active Senders: 238K (+0.5%). Active Recipients: 93K (-4.4%),” they explained.
📢 24H #ETH Network Stats:
💲 Price: $181.82 (-0.5%)
💵 $ETH On-Chain Volume: $290M (-18.3%)
👈 Active Senders: 238K (+0.5%)
👉 Active Recipients: 93K (-4.4%)
Visit https://t.co/u90eafzR5J for more info
— TokenAnalyst (@thetokenanalyst) November 2, 2019
As Ethereum’s on-chain volume declines and bulls fail to build any noteworthy strength, it does appear to be a strong possibility that the crypto could decline further before it finds enough buying pressure to propel its price higher.
Featured image from Shutterstock.