On December 26, Ethereum’s value experienced a notable decline, reversing gains made during the recent Santa Claus rally. The cryptocurrency dropped to $3,340, marking a decrease of over 5.6% compared to its peak earlier this week. This downturn came amidst a broad market retreat, with the total market capitalization shrinking to $3.29 million. Trading volume also plummeted to $17.5 billion in the last 24 hours, the lowest in over a month.
Futures open interest for Ethereum also decreased, reaching $26 billion compared to a high of $28 billion earlier this month, indicating waning demand. Despite these challenges, some metrics point to positive trends. Data from DeFi Llama shows a 5.50% increase in total value locked within Ethereum’s DeFi ecosystem over the past 30 days. In contrast, Solana and Tron have seen declines exceeding 3% during the same period.
The active address ratio has risen from 0.37% in October to 0.57%, the highest since August, reflecting increased engagement. The total number of active addresses has grown to over 927,000. Furthermore, Ethereum’s Market Value to Realized Value (MVRV) score increased by 2.35% to 1.64, suggesting the asset remains relatively undervalued.
Technically, Ethereum’s price chart shows a small double-top pattern forming at $4,095, followed by a bearish breakout. It briefly rebounded to retest the neckline at $3,500, with a doji candlestick emerging on December 25, hinting at further bearish momentum. Given these indicators, Ethereum may continue to drift towards the significant psychological level of $3,000, representing a potential further 10% decline from current prices.
