Ethereum drops below $1,900; will NFTs save the day?

• Top ETH NFT collections such as BoredApe and CryptoPunks have witnessed a drop in their floor price.
• ETH’s on-chain metrics were bearish, suggesting that investors must wait for another price pump. 

Ethereum’s [ETH] state in the NFT ecosystem seemed to have been dwindling for quite some time as the prices of its top NFT collections plummeted. Popular collections like Bored Ape [BAYC] and CryptoPunks have witnessed a considerable decline in their floor prices. 

Read Ethereum’s [ETH] Price Prediction 2023-24

Amidst this chaos, ETH bulls and bears were battling to flip each other while the token’s price struggled to cross the $1,900 mark.

A closer look at Ethereum’s NFT space

Messari’s recent tweet pointed out that ETH’s popular NFT collections like Bored Ape and CryptoPunks have seen a noteworthy 29% decrease in their floor prices.

Interestingly, this decline aligns with the overall marketplace activity in the Ethereum NFT ecosystem. In addition to that, CRYPTOSLAM’s data revealed that Ethereum’s NFT sales volume also declined slightly over the last 30 days.

The same trend was also seen in terms of the blockchain’s total number of NFT sellers last month. 

Source: CRYPTOSLAM

Ethereum’s NFT performance looks concerning

Dune’s data gave more reasons for concern. As per the chart, Ethereum’s number of new and old NFT buyers has been on a declining trend for multiple months. After spiking, ETH’s total number of NFT trade counts registered a decline over the last few days.

However, it was interesting to note that the blockchain’s NFT trade volume went up in the recent past.

Source: Santiment

ETH is again under $1,900

After a comfortable bull rally last week, ETH could cross the $1,900 mark. However, things didn’t take long to change as its price went down again. At the time of writing, ETH was trading at $1,883.51 with a market capitalization of over $226 billion.

Despite the latest price drop, investors’ confidence in ETH was high. This was evident from Glassnode Alert’s tweet, as the number of ETH non-zero addresses reached a new all-time high. The accumulation trend was also seen on Santiment’s chart.

The token’s supply on exchanges declined while its supply outside of exchanges rose, proving that investors were buying the token. 

Source: Santiment

How much are 1,10,100 ETHs worth today   

ETH to cross the $1,900 mark again?

Ethereum’s on-chain metrics shed light on what investors could expect from the token over the coming days. As per CryptoQuant, ETH’s net deposits on exchanges were high compared to the last seven days, which is a bearish signal.

Its Coinbase premium was also red, suggesting that US investors’ buying pressure was relatively weak on Coinbase. Therefore, considering the metrics, investors might have to wait a bit longer to see ETH’s price rise again. 

Source: CryptoQuant