Ethereum experienced a price retreat on Boxing Day, erasing the gains made during the Santa Claus rally. The ETH token fell to $3,340, down over 5.6% from its highest point of the week. This decline took place alongside a general downturn in the cryptocurrency market, with the total market cap of all coins dropping to $3.29 million. The low-volume environment during the Christmas holiday contributed to the crash, as most traders stayed away from the market. CoinGecko data indicated a 24-hour volume of $17.5 billion, down from $24 billion the previous day, marking the lowest volume in over a month. Additionally, Ethereum’s futures open interest continued to decline, reaching $26 billion, down from the month’s high of $28 billion, signaling decreasing demand among futures traders.
Despite the retreat in prices, there are positive indicators in the Ethereum market. Data from DeFi Llama revealed a 5.50% increase in the total value locked in Ethereum’s DeFi ecosystem over the last 30 days, contrasting with decreases in Solana and Tron’s TVL. The active addresses ratio has also been on the rise, climbing from its October low of 0.37% to 0.57%, the highest level since August. The total number of active Ethereum addresses has surpassed 927,000, showcasing continued interest and engagement with the platform. Furthermore, technical data shows that Ethereum’s Market Value to Realized Value score increased by 2.35% in the last 24 hours to 1.64, indicating whether the asset is overvalued or undervalued, with a figure below 3.8 suggesting undervaluation.
Analyzing the Ethereum price chart, it is evident that the ETH price formed a small double-top pattern at $4,095 before a strong bearish breakout occurred. The price then rebounded and retested the pattern’s neckline at $3,500, the lowest swing on December 3. On Christmas day, ETH formed a small doji candlestick pattern, typically a bearish indicator, and a bearish flag chart pattern, pointing towards a potential bearish breakout with a target at the psychological level of $3,000, representing a 10% drop from the current price. It is important to note that this article does not provide investment advice, and the content is for educational purposes only.
In conclusion, Ethereum’s price retreat on Boxing Day reflected broader market trends as cryptocurrency values declined, with Ethereum falling to $3,340 from its weekly high. The low-volume environment during the holiday season contributed to the market crash, with the total market cap of all coins dropping to $3.29 million. Despite the temporary setback, positive indicators in the Ethereum market include increased total value locked in its DeFi ecosystem, rising active addresses ratio, and improvements in technical data, such as the Market Value to Realized Value score. Ethereum’s price chart analysis suggests a potential bearish breakout towards the $3,000 level, emphasizing the volatile nature of cryptocurrency trading. As always, it is essential to conduct thorough research and consult with financial advisors before making investment decisions in the cryptocurrency market.
