Ethereum On-Chain Metrics Signal A Positive Rally Ahead – ETH Price Might Hit This Level Soon
The Ethereum Upgrade overshadowed the miners who had previously driven the ETH blockchain with promises of massive environmental benefits. Ethereum’s developers claimed the upgrade would make the network – hosting a $60 billion ecosystem of cryptocurrency exchanges, lending companies, non-fungible token (NFT) marketplaces, and other apps – more secure and scalable.
At the moment, Ethereum (ETH) is witnessing slight selling pressure as it moves closer to the $1,200 level. Nevertheless, there are high chances of a bounce soon, which could cause the price to climb to $1375. Moreover, some on-chain indicators are pointing towards positive development for Ethereum in terms of network activity.
Chain data provider Santiment reported: “Ethereum’s amount of new addresses being created is hovering around 70k per day again, the highest seen since early August. And after quite a bit of uncertainty around the mid-September merge, the supply of $ETH on exchanges has dropped back to 14.6%.”
Following the significant sell-off in June, Ethereum (ETH) showed a significant upward rally to $2,000 ahead of the Merge upgrade in September. The ETH price rallied approximately 80% from the June lows before drawing back again.
Ethereum (ETH) successfully conducted its Merge upgrade last month, and the ETH price hinted toward a ‘sell-the-news’ type of move. With the U.S. equity markets falling prey to the intense selling pressure, ETH saw a similar wave with the broader crypto market. Since mid-September, ETH has been under selling pressure constantly. Post the Merge event, the ETH price has corrected by more than 25%.
Lowered Discussion Rates- What Does This Indicate?
At the moment, ETH is floating just above $1,375 and has reached here for the first time in the last eight trading sessions. However, the discussion rates around ETH have fallen to a seven-month low. On-chain data provider Santiment warned that the lowered crowd interest in Ethereum could indicate a higher chance of a bounce.
Santiment added: “Ethereum has spiked back above the $1,375 mark, returning to levels last seen on September 27th. It appears the trading crowd has turned their interest to other coins, leaving $ETH prices to rise with much less resistance and expectation than usual.”
The Smooth Transition
The Merge officially kicked in at 6:43 a.m. UTC, with more than 41,000 people tuning in on YouTube to the “Ethereum Mainnet Merge Viewing Party.” They watched closely as key metrics trickled in, indicating that Ethereum’s core systems had remained intact. It took about 15 long minutes for the Merge to officially finalize and come out as a success.
The idea that Ethereum would eventually switch to proof-of-stake was there from the start. However, the transition was a complicated technical effort, essentially an endeavor so risky that many doubted it would happen successfully.Source