The world’s second largest crypto asset Ethereum (ETH) Shortly before 4800 dollarsIt reached its all-time high (ATH) above and remains close to these levels for now. While the Ethereum (ETH) price is expected to exceed the $5000 band in the near future, network congestion and high gas fees are still seen as a major problem.
This being the case, it can be difficult at times to predict which way ETH price will move. On-chain data provider centimentIt was found that address activity on Ethereum increased by 48%, following the decline in the number of unique ETH addresses in late September.
Crypto Quant Its CEO, Ki-Young, pointed out that the supply of ETH in the market is no longer increasing. After the “London hardfork”, the ETH supply rate dropped to almost zero. Thus, Ethereum started to experience a supply shortage, which could be a bullish signal.
$ETH supply doesn’t increase anymore.
Its rate of change became almost zero after the London hard fork.
Just like Bitcoin, ETH is now a scarce asset with limited supply.
Source 👇https://t.co/EqrqzuO4kt pic.twitter.com/ZIxxDy1gQI
— Ki Young Ju 주기영 (@ki_young_ju) November 11, 2021
Aside from all these developments, ETH price action and trading volumes have been showing a bearish trend lately.
Bearish On-Chain Indicators for Ethereum
On-chain data provider centimentshowed a strong bearish trend between ETH price and trading volume. Ethereum The trading volume, although it tried to rise with the price, did not succeed and began to fall. This was especially true from the end of October.
A similar scenario has emerged in Ethereum (ETH) social volume and profit and loss of the ETH network. Santiment stated the following regarding this situation:
“A bunch of long-term differences say we need to go down. This is really worrying. We’re seeing declines in network activity despite rising prices.
Investors are too relaxed to make a profit even if ETH rises. There is even a possibility that people will be punished. Chances are now 50%-50%, the market can usually rise once again after the divergence. This is actually just to confuse traders.”
What do you think Ethereum (ETH) Where will it set its direction? Will network congestion and high network fees drive the price down, or will investors continue to rely on ETH and push it up?
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.