On-chain metrics shows Ethereum nearing new ATH of $1,600

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Ethereum’s price is on a parabolic rally right now, and it’s really close to reaching a fresh ATH on the charts after smashing its previous ATH, a record set back in January 2018. In fact, its rally was somewhat close to that of Bitcoin when it was near its 2017-highs. If the same thing happens, we should expect more rallies from the smart contract network.

Although crypto-Twitter is ecstatic that something is going on, the Ethereum network displayed mixed signals at press time. However, the unique addresses, the transaction count, and even the gas charges were not as high as during the 2017 bull run or the DeFi season.

On-chain metrics

Ethereum Unique Addresses chart

Source: Etherscan

Ethereum’s unique address list has steadily risen to where it stands at press time – 133 million unique emails. In reality, the 24-hour shift saw a positive rise of 151,000 emails.

Ethereum Daily Transaction chart and Gas fees

Source: Etherscan

The daily transaction map illustrated the amount last seen during the bull run in 2017 and during the DeFi summer in 2020. However, unlike these examples, the gas charges on the network have not risen.

Source: Etherscan

The gas charges reported a hike, yeah, but not as conspicuous as the one seen during the 2017 bull run and the DeFi summer. This implies two things: a) The blockchain has strengthened since the 2017 bull run to withstand more load, and b) The new bull run has not yet drawn a lot of retail.

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Technical Aspects

Source: ByBt

At the end of the day, Ethereum Open Interest also reached a new ATH, as seen in the chart attached herein, a trend that led to a rise in trading volume as ETH’s price approached its old ATH. In comparison, the financing cost was also relatively low, reflecting less FOMO on the market as a result of reduced leverage.

What’s Grayscale up to?

Here, the Grayscale side of things is indeed important. ETHE has remained at a steady pace of 2.94 million AUM since 9 December. While ETH is close to retesting or even infringing its old ATH, there seems to be no movement from Grayscale, particularly given the typically high premium on ETHE offerings.

In fact, even the ETHE premium was negative 1.5 per cent as 1 ETHE cost $1,366.29, which was less than the real ETH [$1388] spot price at press time. Maybe as the ETH reaches the new ATH, it can see a sharp rise.

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Ethereum price: What’s next?

Source: ETHUSD on TradingView

It is evident from the map that ETH is just 3% to 5% away from reaching its ATH at $1,420. However, using the trend-based Fibonacci retracement, we can estimate that the next line of protection for Ethereum’s price will be about $1,618 at $1,600, which would mean a 15-to 20-percent surge from where it stood at press time.

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