Crypto analytics platform Santiment is saying that under-the-radar metrics indicate that Ethereum (ETH) could soar above a key psychological level and beyond.
According to Quinlivan, while the metric is currently in a positive zone, it only needs to drop marginally to trigger high demand and consequently an upside move.
“One key sign of a potential upcoming price bottom would be when traders begin making a higher level of transactions while at a loss, compared to when at a profit. Right now, we can see that the ratio of on-chain transaction volume in profit to loss is still favoring profit takes. But not by a large margin by any means… and if ETH drops a bit more from here and threatens the $1,700-$1,800 level again, panic sells would come pouring in to justify the buys.”
Santiment’s director of marketing further says that the supply of Ethereum on exchanges is below 10%, and this is another bullish signal.
“We also can continue to be satisfied with the fact that Ethereum coins are overwhelmingly being kept in self-custody. 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.”
In September of 2022, the Ethereum merge occurred transitioning the second-largest crypto asset from a proof of work consensus mechanism to proof of stake.
On the price target Ethereum is likely to hit amid the above metrics flashing bullish, Quinlivan says,
“Patience tends to reward, and we see no reason why ETH can’t make a move to get back above $2,000 sometime in August, or even before the new month hits.”Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney