156 Interactions, 2 today
On-chain analysts will agree that Ethereum is no longer undervalued if it trades over $3200. The price of the altcoin has increased by nearly 30% in the last week, and the market capitalisation is increasing. In April, the altcoin closed with 45 percent monthly returns, marking the first time in history that it had 7 straight positive months.
This string of positive monthly returns has served as a signal for HODLers and retail traders to book unrealised gains.
ETH made history by breaking through the $3000 barrier, despite the fact that support is negative at the present price cost. The number of ETH kept across spot markets has steadily decreased as the price has continued to rise, accompanied by negative support. This cross is shown in the chart below and was regarded as bullish for the price of ETH.
The issuance of the EIB’s first-ever ETH bond, ETH’s increasing domination, and the steady price surge have all led to ETH’s rally. In the case of Bitcoin, dealer greed has not yet been taken into account; however, this is not the case for Ethereum.
Based on ETH’s on-chain operation, it could happen soon. While Ethereum has surpassed $3000, miner fee income has reached a new low for the first time since December 2020. This may be due to the recent optimisation of the MEV mechanism, as well as the fact that traffic has switched to BSC, resulting in a drop in GAS.
The income of miners has fallen by about 30%, which is important when it comes to the longevity of the current price rally and future price exploration for ETH. The new price movement of ETH versus Bitcoin could be the highest since the bull market began in 2020. Historically, such big market changes occur only before the start of an alt season, with most top alts rallying and reaching new highs.
There are traders who are underexposed to ETH at the current price level; if they purchase at the current price level, with sufficient demand, there could be fresh support for ETH above the $3000 level.
This sellers, who are purchasing the dip, are less likely to exit at the first instance of a drop below $3000, and this is particularly true for ETH, which is known for notoriously strong price and trading volume comebacks. With rising market capitalisation, consumption, and a rising price, ETH maintains its supremacy in the alt season.