🌎 Ethereum Price Falls Losing Santa Rally Gains

Ethereum Price Falls on Boxing Day, Losing Santa Claus Rally Gains

Ethereum’s price retreated on Boxing Day, erasing the gains made during the Santa Claus rally. The Ethereum token fell to $3,340, down by over 5.6% from its highest level this week. This retreat occurred as a sea of red spread in the crypto industry, with the market cap of all coins falling to $3.29 million.

Low Trading Volume and Falling Open Interest

The Ethereum price fell in a low-volume environment as most traders remained away from the market during the Christmas holiday. The 24-hour volume was $17.5 billion, down from $24 billion a day earlier, marking its lowest volume in over a month. Additionally, Ethereum’s futures open interest continued falling, reaching a low of $26 billion, down from this month’s high of $28 billion. This decline in open interest is a sign of falling demand among futures traders.

Positive Signs in the Ethereum Market

Despite the recent decline, there are some positive signs in the Ethereum market. The total value locked in its DeFi ecosystem has risen by 5.50% in the last 30 days, according to data from DeFi Llama. In contrast, Solana and Tron’s TVL has dropped by over 3% in that period.

The active addresses ratio has continued to rise in the past few months, increasing 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 have risen to over 927,000.

Technical Analysis

More technical data shows that Ethereum’s Market Value to Realized Value (MVRV) 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 MVRV score of less than 3.8 indicates that an asset is relatively undervalued.

Ethereum Price Analysis and Outlook

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, 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 upper shadows and is usually a bearish sign. Ethereum has also formed a bearish flag chart pattern.

Based on this analysis, the coin will likely have a bearish breakout and reach the psychological point at $3,000, down by 10% below the current level.