Ethereum [ETH] could risk a further decline despite losing more than 23% in value to trade at $1,261 in the past seven days. The reason for this possibility was the strong deviation of the altcoin’s on-chain withdrawals.

Onchain Edge, in a November 11 post on CryptoQuant, noted the status of these withdrawal transactions. Additionally, he suggested that ETH investors might expect another price correction due to these actions.

Lily AMBCrypto Price Prediction for Ethereum 2023-2024

According to the publication, the possibility was higher. Additionally, a correction at the current stage did not bode ill for Ethereum in the long run. While supporting his argument, he also pointed out that similar circumstances occurred in May and November 2021. The most recent was in May 2022.

From there, what happens?

According to on-chain data, Glassnode revealed that the total volume of Ethereum inflows has decreased significantly since November 9. The drop was definitely not bad mistrust that has shaken the ecosystem since the FTX Collapse. With these low exchange rate deposits, this implied that more investors were considering other options for storing their ETH. While this data may indicate less selling pressure, it’s likely that much less activity is the reason for the decline.

Source: Glassnode

In addition to this lack of interest in stock market trading, Derivatives market was not left out. Another revelation from Glassnode showed that futures volume over the past 24 hours was an extremely negative value across all exchanges. As of press time, Binance futures volume has shredded $8.31 billion during the aforementioned period.

This indicated one of the worst levels of interest since the start of 2022. Therefore, this on-chain status, if not improved in the coming days, could align with the premonition of a further fall in prices.

Ethereum futures volume in the derivatives market

Source: Glassnode

To a greater extent, Saniment showed that this possibility was not excluded. At the time of this writing, the on-chain data analytics platform revealed that the 30-day market value to realization ratio (MVRV) was -7.723%. At this value, it implied that ETH investors had recently suffered losses.

Moreover, the profits accumulated before, especially on the exchanges, were now in ruins. Similarly, the MVRV Z-score was negative at -0.0263. Therefore, the realized capitalization value had a high potential to be worth more than the undiluted market capitalization.

Ethereum Profit Data vs. MVRV

Source: Santiment

Get ready for more rips

However, indications from the exponential moving average (EMA) showed that it might be time for a correction. This was due to the 50 EMA (yellow) already in pole position to surpass the 20 EMA (blue).

On the occasion that it finally crosses, the sellers could finally take control of the market and the price drops lower than the current $1,200 region. In the medium to long term, the 200 EMA (purple) indicated that the correction would eventually lead to a recovery in prices. Nevertheless, it might be necessary to exercise caution before assuming that the decline would be an inevitable event.

Ethereum Price Analysis

Source: Trading View