CryptoQuant analyst Greatest_Trader, in his shared analysis to Ethereum (ETH) pointed to some interesting metrics.
CryptoQuant Analyst Points To The $1,000 Level For Ethereum (ETH) Price
The analyst said the following about the outlook of ETH:
“The chart below consists of the Transactions Metric (30-day EMA) and the price of Ethereum. Typically, periods of market downturn are followed by significantly lower activity by market investors, resulting in a lower transaction count. According to the chart, the metric has been in a downtrend since May 2021 and has recently hit a new low.
Also, as the chart shows, every sharp downtrend in the metric has been accompanied by a significant price drop. Finally, the metric dropped significantly, indicating a lack of activity. Therefore, the price may soon face another drop to the key $1,000 support level.”
The on-chain Ethereum Exchange Reserve indicator also reveals that ETH reserves on centralized exchanges have decreased by more than 30%.
While the cryptocurrency community is looking for a rebound as we enter the new year, prices have remained virtually unchanged.
It has been almost a hundred days since the Merge update took place, which allowed the Ethereum blockchain to reduce energy consumption by almost 99%. Although there was a brief rise in ETH prices after this event, the uptrend was soon cut short due to the collapse of FTX and weak technical indicators.
*Not investment advice.
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