Ethereum just enjoyed a decent relief rally. But don’t celebrate the recovery just yet.
The popular cryptocurrency recently popped 11% in just 24 hours. Yet, the second-largest digital asset is still struggling to catch up with rival networks like Cardano (ADA) and Chainlink (LINK).
So, what is really holding ETH back right now? Let’s break down the numbers and see what’s happening behind the scenes.
Why This Altcoin Trails Behind Its Peers
Currently, Ethereum looks like the most undervalued major altcoin on the market. In fact, Santiment’s MVRV 30-day data paints a pretty gloomy picture for recent buyers.
Investors who bought ETH in the last month are sitting on average losses of 5.5%. Meanwhile, folks holding Cardano or Chainlink are experiencing much smaller drawdowns. Therefore, Ethereum’s short-term return on investment simply isn’t keeping up.
Some traders view this negative MVRV data as a great time to buy the dip. But others are simply panic selling to stop the bleeding. Right now, that fearful selling is completely dominating the market sentiment.
Net Realized Profit and Loss Shows Market Fear
Let’s check the on-chain indicators for more clues. Specifically, the net realized profit and loss data shows a highly cautious and nervous market.
Over a 48-hour window, Ethereum’s realized losses dropped from $366 million down to $78 million. Sure, that drop means the intense selling pressure is finally slowing down a bit. However, these losses remain unusually high compared to neutral market conditions.
Basically, underwater investors are exiting their positions rather than buying more to average down their costs. This constant selling fear puts a heavy ceiling on any upward price momentum.
The Crucial $2,108 Resistance Range to Watch
Right now, ETH is trading right around $2,067. Plus, the asset is completely stuck between a rock and a hard place.
The price remains heavily capped below a tough $2,108 resistance range. Yet, it manages to hold steady above a solid $1,902 support level. Interestingly, that $1,902 mark lines up with a massive $2.9 billion demand zone where buyers historically step in to save the day.
So, a real breakout depends entirely on a structural shift in investor confidence. If buyers finally step up and smash through that $2,108 barrier, ETH could quickly shoot toward $2,394. Until then, expect plenty of choppy, sideways movement.
This current market setup requires extreme patience from crypto investors. The recent 11% bounce clearly shows that Ethereum still has plenty of life left in it.
But until the fearful selling stops, ETH will likely stay trapped in this frustrating holding pattern. Keep a very close eye on that $2,108 resistance level. If it breaks, the momentum shifts completely. Otherwise, just sit tight and let the market decide its next major move.