of cryptocurrency market Although it has suffered from increased volatility recently and is the second largest crypto token by market capitalization, Ethereum (ETH), not exempt. This has made it difficult to determine Ethereum's future trajectory. However, certain indicators indicate what direction ETH's price is likely to go when this volatility subsides.
Ethereum investors are bullish
data Coinglass tells you most things. Ethereum Despite recent price fluctuations, investors and traders remain bullish on crypto tokens. Specifically, most of these traders continue to hold long positions in Ethereum, meaning they are betting on Ethereum to appreciate significantly in the long term.
The bullish sentiment towards Ethereum is highlighted by traders who are still losing money despite losing $4.5 million while wanting ETH. It was opened Another long position against the second largest crypto token.this crypto whale I once borrowed 17.3 million USDT from Compound just to increase my position in Ethereum.
These investors’ bullish stance on Ethereum is even more admirable given that bulls have suffered the most from ETH’s high volatility. data According to data from Coinglass, over $16 million in long positions were liquidated in the past 24 hours, compared to $10 million in short positions liquidated during this period.
meanwhile, data From market intelligence platform Into the Block ethereum Market value versus realized value (MVRV) The ratio is decreasing, indicating that many Ethereum holders are yet to make profits. This could be bullish for the price of ETH as these holders are likely to hold in anticipation of further price appreciation, thereby providing support against a potential price decline.
advocate for the bears
Derivatives market activity and Ethereum’s MVRV ratio paint a bullish outlook for the crypto token, but Ethereum’s network growth This suggests that ETH may still experience further price declines. data According to research by Santiment, the rate of new user entry into the Ethereum ecosystem has slowed recently.
this decline network growth This is also evident in the recent Bitcoinist report. I got it. Ethereum fees have fallen to their lowest level since January. Ethereum fees This value is known to spike when activity on the network increases. Therefore, lower fees mean fewer new users. Currently trading on the network or even holding ETH tokens.
However, the ray of hope is data Santiment’s data also shows an increase in velocity, suggesting that existing users on the network are actively trading and injecting more liquidity into the Ethereum ecosystem. This factor could also contribute to a potential price hike for ETH tokens.
According to Ethereum, at the time of writing, Ethereum is trading at around $3,200 and has risen over the past 24 hours. data From CoinMarketCap.
ETH bears pull price below $3,200 | Source: ETHUSD on Tradingview.com
Featured images are from Token Information, charts are from Tradingview.com
