Ethereum Price Can Surge to $2,000 Per These On-Chain Metrics

The world’s second-largest cryptocurrency Ethereum has witnessed some selling pressure correcting by 5.7% over the last week and is currently trading under $1,900 levels. The ETH price has seen multiple rejections at $2,000 levels, however, this boring price action could be ending soon as per on-chain data.

As per on-chain data provider Santiment, the percentage of discussions around Ethereum (ETH) has dropped to 2023-lows, the levels last seen in mid-May. While other altcoins like XRP and Chainlink have recorded strong moves, ETH has been showing dull price action.

But Santiment explains that this is not a cause for worry. It adds that “In fact, we have had several backtests show that many altcoins thrive best when traders are distracted by the other shiny assets on the block at the time. And right now, that shiny asset is XRP”.

A possible indicator of an approaching price bottom is when traders start conducting more transactions at a loss rather than a profit. Currently, the on-chain transaction volume shows more profit-taking than losses, but the margin is not significant. If ETH declines further toward the $1,700-$1,800 level, panic sells might occur to balance the buying activity.

Ethereum Short-Term and Long-Term Trade Position

While making an informed decision toward future price action, it is important to understand the trader’s position as of now.

At present, addresses active in the last 30 days are experiencing an average return of -0.35%, which is close to break-even. On the other hand, long-term traders active in the past 365 days have seen an average return of +14.9%.

Another major positive indicator for Ethereum is that a large number of ETH are still in custody. Santiment explains: “With less than 7% of coins on exchanges, the likelihood of huge sell-offs occurring remains lower than usual. This should be considered one of the best long-term bodes of confidence for the asset that had a somewhat disappointing halving (as far as price is concerned) in September, 2022”.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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.