Ethereum Price On The Rise, Will It Continue Or Slump Soon?

• 1 ETH’s on-chain transaction volume indicates a bullish sentiment, with a profit-to-loss ratio of 3.504, suggesting that most holders are in profit.
• 2 Development activity is robust and the Ethereum price has displayed a prime price rally from a critical level

The Ethereum chart on Tuesday 12th shows a pause in price after a splendid rally. As of Wednesday 13th, the current market price (CMP) is $4036.3, representing a 1.45% intraday increase, and is showing bullish traits for more growth in future sessions. It has demonstrated a rise in the past week by 13.54%, month by 61.09%, and three months by 78.70%, indicating a reliable upward trend.

Ethereum price has displayed a prime price rally from the critical level of around $2900 on the chart, showing sustenance signs at another critical level ($4000). This price structure on the daily chart shows that Ethereum price has the potential to surpass its all-time-high level, similar to Bitcoin.

The Ethereum crypto appears to be geared to keep on going upwards on this remarkable price rally after it recently paused at the $4000 level on Tuesday. As of now, the selling pressure is expected to overcome the resistance level (or) the next supply zone (around $4600) and ascend to new high.

Looking At ETH’s Charts

ETH has shown a bullish strength already by giving a bullish rally so far, and more rising potential lurking on the ETH chart as it stays above the 20, and 50-Day EMAs. Therefore, the Ethereum price prediction highlights that, if the price manages to surge with solid buying volume, then the next possible targets could be $4400 and $4600, respectively.

However, if the crypto price fails to stay above $4000, it could decline to $3800, starting a downtrend. The next support would then be $3400.

Ethereum On-Chain: The transaction volume ratio in daily profit to loss

Daily on-chain transactions are used to measure the amount and proportion of ETH that have been moved on the blockchain. These metrics determine whether the Ethereum coins are either in profit or in loss, based on their acquisition cost.

Daily On-chain transaction volume in profit(ETH) is – 253k

Daily On-chain transaction volume in loss(ETH) is – 72.2K

The ratio of daily on-chain transaction volume in profit to loss of Ethereum is 3.504>1.

Since Ethereum’s volume in profit is high and the ratio is above 1, it means that most holders of the crypto are making profits and their sentiment and behavior may be more likely to sell or to take profit.

Correspondingly, It highlights the potential for downward pressure on the price of Ethereum due to a large number of ETH coins that could potentially be sold, affecting its supply dynamics and price.

Likewise, it also exhibits the trend and momentum of ETH, that profit and the ratio is rising, which means that the Ethereum price is in an uptrend and gaining momentum, as more holders are becoming profitable.

Active Wallet Address Analysis Of Ethereum Crypto

Active addresses refer to unique addresses of Ethereum’s users that participate in one or more transactions within a given timeframe. The number of distinct addresses in the ETH coin that participated in a transfer for the given asset in the past 24-hour window is 523K transactions, the 7-day window is 2.52 Million transactions, and the 30-day window is 7.64 Million transactions.

The increasing number of people using and trading the ETH coin indicates a higher demand and value for the coin. This is evident from the growing number of active addresses of Ethereum over time. These terms highlight both the short-term and long-term trends of ETH’s activity and adoption.

Development Activity In Ethereum Crypto

Furthermore, the development activity reflects the level of activity, recent updates, and changes occurring in the form of undergoing projects and developments in Ethereum crypto. The developer’s activity on Ethereum has shown sustained growth with a rise in commit count over the last three months.

Summary

Ethereum price (ETH) has recently paused at $4000 after a strong uptrend, with the current market price at $4036.3. It’s showing signs of continued growth, backed by a 13.54% increase over the past week, 61.09% over the month, and 78.70% over three months.

Similarly, the on-chain transaction volume indicates a bullish sentiment, with a profit-to-loss ratio of 3.504. Most holders are in profit, suggesting the probability of potential selling pressure. Likewise, active wallet addresses have also increased, signaling higher demand and adoption. Development activity is robust, indicating ongoing improvements.

Moreover, if ETH maintains momentum, it could target $4400 and $4600. However, falling below $4000 could lead to a decline towards $3800 or even $3400.

Technical Levels

Support Levels: $3800

Resistance Levels: $4400

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.