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IntoTheBlock has published a report about Ethereum, while the whole market is watching what is happening to Bitcoin.
At the moment, IntoTheBlock says, Ethereum’s on-chain activity shows several potential resistance spots ahead on the chart. However, in the current market they may prove insignificant. Besides, many Ethereum owners are expecting the price to rise higher in the nearest term with selling pressure remaining at the minimum.
5 key ETH indicators to watch revealed by report
The above-mentioned data source has revealed five important indicators that traders and investors should watch to get an idea of which direction the Ethereum price may head next.
The first one is Ethereum daily transactions. When this metric rises, this indicates a higher network activity which may also signify a higher demand for ETH. The second one is large holder netflow. This one measures the net movement of Ethereum owned by large wallet owners (often also known as whales). This indicator is important to watch since once whales begin accumulating ETH, this shows their long-term confidence in this asset and reduces any sell-pressure that may occur.
The third one is short-term holder address count. It tracks the way short-term do with their ETH, particularly in terms of speculation. Once the short-term investor count rises, it may signify an increase in retail interest towards Ethereum. The fourth indicator is the holding time of transacted coins.
When this signal drops, it shows that long-term holders are keeping their ETH in their wallets without selling, while ETH demand continues to increase. The last but not least here are exchange inflows and outflows. Monitoring the volume of Ethereum entering or exiting crypto exchanges is important because once inflows are big, this means holders’ intentions to sell, while large outflows hint at accumulation and long-term holding.
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Mixed readings from indicators so far
Currently, however, according to IntoTheBlock these key indicators are showing mixed signals. The new ETH wallet count holds below the levels reached during previous bull markets. This is likely thanks to the increase of Layer-2 solutions popularity.
The daily transaction count has increased but not much, again lower than during the previous bull markets. Still, the volume of transactions keeps growing as large holders continue buying ETH and showing confidence in its long-term potential. Currently, Ethereum is trading at $3,323.
Source: https://u.today/5-key-indicators-to-watch-for-ethereums-next-move-report