Ethereum (ETH) Price Warning Is Issued By Crypto Firm Santiment | CryptoGazette https://ift.tt/3e6w5Tc

It’s been just revealed that the crypto analytics company Santiment just released a warning for investors, saying that there are some metrics that are showing sell pressure for Ethereum.

As you probably know by now, ETH has bounced back from the latest overall crypto market dip.

Bearish flags for ETH?

But, on the other hand, Santiment says in a new blog post that the rising supply of ETH seen on exchange platforms is a bear flag.

“Over the past few days, we are seeing large spikes in ETH supply on exchanges, suggesting that a decent amount of sell pressure is looming. Looks like sellers are using every price pump to exit their positions where possible (especially if they missed a chance to sell previously).”

At the moment of writing this article, ETH is trading in the red, and the con is priced at $3,886.

ETH could be in a danger zone

The crypto firm also said that that the MVRV 7D metric, which measures the short-term profit and loss of holders, shows that ETH is in a “danger zone.”

“All short-term holders are in the profit at the moment – which could incentivize them to take some profits.”

The firm continued and explained more:

“ETH’s Network Growth is seeing some divergence, as price drops, we are seeing an increase in network growth, which is kind of unusual. Could this be a sign of cautious (those that don’t FOMO during price rises) new participants finally entering?”

Santiment also made sure to point out the fact that ETH’s daily active addresses remain healthy-looking. They also noted that the network is still very much active regardless of the price action. Santiment says that this is definitely a good sign.

Check out the complete blog post in order to learn what more the crypto insights firm has to say.