The ETH on-chain data shows that the worst is yet to come for the altcoin after the 10% correction as the asset was not performing well over the past week. After hitting 440% the previous week, the price of the leading cryptocurrency slipped by 10% as we reported in the ETH price news.
During the worst part of the rally, the cryptocurrency tapped $380 but ETH now trades above $404 as the buyers have stepped in the legacy markets. Despite the ongoing reclamation from the pivotal $400 technical level, the ETH on-chain data and exchange indicator suggesting that the bigger correction is upcoming. Blockchain analytics firm IntoTheBlock reports that as of the morning from two days ago, four out of seven core metrics of the coin are showing bearish signals. Two of the other readings are neutral and one is bullish. The four bearish metrics are:
- In the money which is a metric that tracks the momentum of profitability for the ETH holders.
- Large transactions worth over $100,000 for a cryptocurrency in a day.
- Bid-ask volume imbalance which is the difference between the orders on the buy-side.
- Futures market momentum which is the momentum of a cryptocurrency futures market as determined by other metrics.
IntoTheBlock’s observations came shortly after the blockchain data Santimnet reported that the number of active ETH addresses has been on the decline lately. This lends to the theory that smaller ETH and altcoin holders are getting priced out of using ETH because of the high transaction fees. Despite the bearish outlook in the near term, the analysts are certain that the longer-term fundamentals of the network will remain bullish.
Chris Burniske, a partner at Placeholder Capital said that he thinks ETH’s on-chain economies and the position in the public eye will allow it to approach $1 trillion network valuation:
“Meanwhile to the mainstream ETH will be the new kid on the block – expect a frenzy to go with that realization. Given ETH’s outperformance of BTC over its lifetime, not to mention smaller network value and strong on-chain economies, I see every reason for ETHBTC to surpass the all-time high.”
This was echoed by Real Vision CEO Raoul Pal who commented that Defi will likely propel ETH higher.
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