Ethereum [ETH]: Decoding the possibility of a price correction as failed transactions surge

With the total number of failed Ethereum transactions reaching 509, 893, the million-dollar question is whether or not a price correction is imminent.

fact. Whenever the total count of failed ETH transactions exceeded 200,000, it indicated “market overheating” and was often followed by price corrections.

“In the past, when Ethereum’s transaction failures rise above 200,000, it shows a market overheating and has often seen a price correction.”In the last month, ETH’s price oscillated between $2100 and $1800. At press time, the leading altcoin exchanged hands at $1,869, with a 2% price rally within the past 24 hours, data fromOn-chain assessment of ETH’s performance revealed a decline in network activity since 14 April.

In addition to a fall in its network activity, ETH’s funding rates fell to a one-month low of -0.013 on 3 May. When a crypto asset records negative funding rates, it means that most traders in the market are taking short positions or betting against the asset. As a result, it is often taken as an indicator of bearish sentiment and sometimes precipitates a decline in an asset’s value.Furthermore, as ETH’s price fell since mid-April, holders of 1000 to 100,000 ETH coins gradually distributed their ETH holdings, contributing to the decline in value, per data from Santiment.Interestingly, bigger whales, that hold between 100,000 to 10,000,000 ETH coins, increased their holdings during the same period.

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