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At the time of publishing, Ethereum was priced just over $1,850, but many popular narratives still believe Ethereum to be undervalued at the same amount. Having said that, others remain dubious that the altcoin’s prolonged price surge would be maintained.
In retrospect, intense crowd cynicism has traditionally been positive for altcoins. In reality, the current level of cynicism was last seen in September of 2020. Twitter may not be the perfect place for reliable research and forecasts, but it may be suitable for market contrarians. As a result, the altcoin’s price could do the opposite of what opinion implies, and there could be a prolonged market spike rather than the highly expected pullback.
The alt’s increasing connection with BTC contributes to the facts supporting the prolonged price rally. A connection of more than 80% between the two assets could have raised fears of a price drop. However, the two commodities have fluctuated in unison, with ETH’s market pattern reversing a few times after the beginning of 2020.
At the press time price level, other metrics tended to help the above argument. According to Glassnode info, Ethereum’s supply last active 3 months to 6 months (1-day moving average) reached a 1-year high of 10,036,843 ETH. The previous one-year high was set on November 21, 2020.
According to the aforementioned table, the volume of supply that is currently available rises in tandem with the price of Ethereum. For eg, the alt’s press time price level seemed to equate to a 10 million Ethereum supply.
According to on-chain research, approximately 40% of ETH HODLers have owned the commodity for fewer than 12 months, suggesting that the volume of supply last active at the said level is reflective of a prolonged price rally. The change in HODLing trends, coupled with a mere 41% concentration by big HODLers, indicates that an extended price rally could carry ETH to a local peak or new ATH over the next two weeks.
While some traders claim that ETH is not an institutional-grade commodity, 91.2 percent of Ethereum addresses are currently profitable, which undermines traders’ bearish expectations on spot exchanges. Based on the above two metrics, Ethereum’s price surge could be continued for the next two weeks.