Analysis Identifies 5 Ethereum Metrics to Watch as Pundits Expect ETH to Explode Next

Analysis from IntoTheBlock shows Ethereum could be the next to witness massive inflow of capital amid contrarian play from the second-largest cryptocurrency.

Ethereum has failed to trade at par with Bitcoin’s continuous northward push. For context, the pioneering crypto asset broke to a new price discovery today, reaching a new all-time high of $98,000.

Meanwhile, Ethereum has struggled to find its bullish footing, rising just 3.87% in the past week compared to Bitcoin’s 7%. However, analysis from IntoTheBlock suggest Ethereum could witness its bullish phase soon.

In a recent analysis, the market intelligence platform stated that Ethereum has historically been the next asset investors rotate their Bitcoin profit to. As a result, the massive capital deployment catalyzing Bitcoin’s bullish outburst would soon flow into the altcoin king.

Bitcoin has been the star of this rally, but what about Ethereum?

Historically, Ethereum has been one of the first assets to benefit from profit rotations after Bitcoin’s move.

Currently, Ethereum’s on-chain activity shows evenly spaced potential resistance levels, but in… pic.twitter.com/amkbZmtEyo

— IntoTheBlock (@intotheblock) November 21, 2024

Ethereum Whales Anticipating Redeployment

IntoTheBlock insisted that on-chain activities indicate that Ethereum proponents are expectant of this impending cash flow. The platform mentioned that reduced Ethereum selling pressure shows that the asset’s whales are aware of what’s coming.

However, the Thursday commentary suggests a mixed sentiment around the Ethereum ecosystem. The analysis infers that key on-chain indicators have not flipped bullish compared to previous cycles.

For instance, IntoTheBlock’s data signals that the creation of a new Ethereum address remains mild in relation to the previous bull cycle. Notably, the analysis mentioned this may likely stem from the surging usage of Ethereum sidechains such as Base.

Meanwhile, the data indicates a positive uptick in metrics like daily transactions, transaction volumes, and whale accumulation. The commentary shows that the average 24-hour transactions on the Ethereum network have grown from 1.1 million to 1.22 million in the past three months.

IntoTheBlock asserts that an Ethereum upsurge might be on the horizon if Bitcoin consolidates at its current high. However, the analytical firm mentioned five metrics that would indicate Ethereum’s next move.

Indicators of Ethereum’s Outbreak

Per the analysis, IntoTheBlock emphasized the importance of Ethereum’s daily transactions as the first metric to watch. With around 8 million transactions processed last week, the analytical firm noted that a spike in daily transactions signals growing interest in the Ethereum network.

Secondly, the analysis indicated the correlation between increased large holders and Ethereum’s price. Holders of at least 0.1% of Ethereum’s circulating supply maintain a positive net flow, signaling confidence in the asset.

Meanwhile, IntoTheBlock noted that the behavior of short-term holders is the third metric that influences Ethereum’s price. An increase in addresses holding Ethereum for less than one month signals retail interest in the altcoin king.

The fourth vital indicator is the holding time of transacted coins. Notably, the time users hold Ethereum before distributing their tokens has increased to 11 months, signaling reduced selling pressure. This strengthens the demand-supply curve.

Conclusively, the analysis showed the importance of Ethereum’s exchange flows. Persistent inflows into exchanges signal increased selling activities, and a converse scenario indicates an accumulation trend.

Meanwhile, Ethereum trades at $3,351 at the time of writing, up 7.32% in the past 24 hours.