Ethereum (ETH) Metrics Hints Readiness for Huge Gains

Ethereum (ETH) may be experiencing a major drawdown at the moment, however, on-chain data points to a potential run in price in the short to mid-term.

Next Ethereum (ETH) Price Target Locked

According to on-chain market analyst, Ali Martinez, Ethereum currently has no significant barrier ahead of it judging by the In and Out of the Money Around Price indicator from crypto analytics platform IntoTheBlock.

This data shows that a total of 7.82 million addresses or 65.4% of the total wallets in the network are in the money, or profitable at the moment. This is compared with the 4.13 million addresses or 34.5% that are out of the money or in losses. Ethereum holders that are at break-even points or “At The Money” are just approximately 12,430 or 0.10% of the total wallets in the network.

To Martinez, since there are no supply barriers in sight, Ethereum could ultimately soar as high as $2,700 in the short term, a level beyond the $2,500 conservative projection. Should this feat be achieved, Ethereum would be retesting a price level last seen in early May 2022.

#Ethereum looks set for further gains!

The path ahead of $ETH is clear, with no significant supply barriers in sight, suggesting a potential rise to $2,700 or beyond. Additionally, a robust demand wall at $2,000 provides solid support, potentially cushioning any corrections. pic.twitter.com/s79YAlkS8w

— Ali (@ali_charts) January 1, 2024

This price call, though ambitious, is a big shift from current reality. At the time of writing, Ethereum was trading for $2,310.95, up by 0.28% in the past 24 hours as it tries to wriggle away from the mild losses accrued as the new year unfolds. Over the past week, Ethereum has still maintained a mildly bullish outlook, having surged by 1.12%.

Ethereum Versus Alternative Chains

Ethereum is facing an existential threat from some of the key rivals that surround it including Solana (SOL), XRP Ledger, Avalanche (AVAX), and Cardano (ADA) to mention a few.

While the growth of Ethereum has been relatively poor compared to these alternatives, Solana has expanded its influence over the former with the visible flippening happening to DEX volumes and other core areas.

In addition, Solana has recorded a more bullish price action when compared to the past year as SOL jumped as high as 989% while Ethereum has only managed to print 94.16% over the past year. Other chains like Cardano and the XRPL are also innovating in a way that proves they are fully ready to evolve in the coming months.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.