These on-chain metrics suggest that ETH Could Rally Going Ahead

The world’s second-largest cryptocurrency Ethereum (ETH) has been under a bit of selling pressure moving closer to $1,200 levels. However, the ETH price is showing a bit of bounce back recently and has surged to $1375 levels.

Some on-chain indicators hint at a positive development in terms of network activity for Ethereum. Ason-chain data provider Santiment reports:

Ethereum’s amount of new addresses being created is hovering around 70k per day again, the highest seen since early August. And after quite a bit of uncertainty around the mid-September #merge, the supply of $ETH on exchanges has dropped back to 14.6%.

Post the major sell-off in June, Ethereum (ETH) gave a solid run-up all the way to $2,000 ahead of the Merge upgrade. The ETH price rallied nearly 80% from the June lows before retracing back once again.

Last month, Ethereum (ETH) successfully conducted its Merge upgrade, and the ETH price showed a ‘sell-the-news’ kind of move. As the U.S. equity markets came under strong selling pressure, ETH along with the broader crypto market faced a similar fate.

Since mid-September, ETH has been constantly under selling pressure. Since the Merge event, the ETH price has corrected more than 25%.

ETH Crowd Discussion on the Low

ETH is currently trading just above $1,375 and has reached here for the first time in the last eight trading sessions. However, the discussion rates around ETH have dropped to a seven-month low. On-chain data provider Santiment notes that the low crowd interest in ETH leads to a higher chance of a bounce. It adds:

Ethereum has spiked back above the $1,375 mark, returning to levels last seen on September 27th. It appears the trading crowd has turned their interest to other coins, leaving $ETH prices to rise with much less resistance and expectation than usual.

It will be interesting to see whether ETH can continue with this momentum going ahead.

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.