- Returns of Ethereum long-term traders active over the past year have increased 14.9% on average.
- ETH trades at $1,895, below the psychological barrier of $2,000, while altcoins like XRP and Chainlink grab the spotlight.
- Less than 7% of Ethereum supply is on exchanges with a large percentage being held in self custody, reducing the selling pressure on ETH.
Ethereum price has decreased around 5% in the last seven days despite the rally in other altcoins such as XRP and Chainlink (LINK). Still, several on-chain metrics point to an upcoming increase in ETH price, which is likely to revisit the $2,000 psychological threshold soon, according to analysts at intelligence tracker Santiment.
Also read: Ethereum founder Vitalik unveils account abstraction that could onboard billions of users
Ethereum network’s bullish on-chain metrics
Ethereum price declined from its peak of $2,139.44 in April to $1,889 at the time of writing, within a three-month period. The $2,000 level is considered a key psychological support level and analysts at Santiment say traders are becoming increasingly optimistic about the altcoin.
While discussions in social media about Ethereum among traders have declined to the 2023-low observed in mid-May, analysts are bullish on ETH price recovery.
Ethereum social dominance
Analysts note that the ratio of on-chain transaction volume in profit to loss is still favoring profit takes in Ethereum, though by a relatively small margin. If Ethereum price drops from the current level to $1,800, panic selling is expected. Santiment analysts said that price declines in response to panic selling would justify higher demand for the altcoin.
Ratio of Ethereum’s daily on-chain transaction volume in profit to loss
Ethereum long-term traders and holders, or those who have hold ETH for at least a year, are currently registering an average of 14.9% gains. However, ETH wallet addresses that have been active in the past 30 days are registering minor losses of 0.35%.
Santiment analysts note that when these percentages are closer to zero than in extremely negative territory, it opens up profitable opportunities for ETH holders and reflects a bullish potential in the asset.
Another key on-chain metric is the percentage of Ethereum tokens on exchanges and in self-custody. According to data from Santiment, less than 7% of Ether is on exchanges, meaning that the likelihood of a huge sell-off is lower than usual.
This metric is considered one of the long-term bodes of confidence for Ethereum, paving the way for the altcoin’s return to the psychological level of $2,000.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.