- Ethereum’s Galaxy Score was high, which was a typical bull signal.
- Whales continued to accumulate, and derivatives metrics were positive.
Ethereum [ETH] has been sitting comfortably under the $1,900 mark, because of which investors have been bearing losses. In fact, the king of altcoins’ number of addresses in profit reached a one month low. However, a few of the metrics turned bullish on the token, giving hope for a volatile northbound price movement in the coming days. Is Ethereum actually setting up the stage for a bull rally?
Read Ethereum’s [ETH] Price Prediction 2023-24
Ethereum investors are at a loss
Glassnode Alerts’ latest tweet revealed that ETH investors were suffering high losses. As per the tweet, Ethereum’s number of addresses in profit reached a one month low of 66.6 million. A major reason behind this was the token’s slow-moving price action. ETH has failed to cross $1,900 for quite some time.
#Ethereum $ETH Number of Addresses in Profit (7d MA) just reached a 1-month low of 66,634,291.452
View metric:https://t.co/9t2b8JZ83s pic.twitter.com/xIPCbLCGY0
— glassnode alerts (@glassnodealerts) August 7, 2023
According to CoinMarketCap, ETH was down by nearly 1.4% in the last seven days. At press time, it was trading at $1,837.80 with a market capitalization of over $220 billion. It was interesting to see that despite the price decline, ETH’s 24-hour trading volume shot up by 23%.
In fact, as per Glassnode, the Network Value to Transactions (NVT) Signal (7d MA) just reached a 3-month high of 2,386.022. Nonetheless, LunarCrush’s latest data gave a bullish notion and suggested that ETH’s price chart could soon turn green.
#Ethereum $ETH NVT Signal (7d MA) just reached a 3-month high of 2,386.022
View metric:https://t.co/qzgQvWFvGX pic.twitter.com/zghSsRqrNT
— glassnode alerts (@glassnodealerts) August 7, 2023
Decoding Ethereum’s stance
LunarCrush’s data revealed that Ethereum had the highest Galaxy Score. A high Galaxy Score is a bullish indicator, suggesting a northbound price movement over the coming days. The whales also seemed to have high confidence in the token.
This was evident from the slight rise in the number of wallets with a balance of 10,000 ETH to 100,000,000 ETH. However, the sharks and shrimps continued to sell as addresses with a balance of 10 ETH to 10,000 ETH declined.
Source: Santiment
Apart from the Galaxy Score, a few other on-chain metrics were also in the bulls favor, increasing the chances of more volatile price action. For instance, Ethereum’s exchange reserve was declining, which meant that the token was not under selling pressure.
Its MVRV Ratio also showed signs of recovery, which was bullish. ETH’s network activity also remained high, as evident from its daily active addresses. Moreover, ETH’s network growth was also high in the last seven days.
Source: Santiment
Is your portfolio green? Check the Ethereum Profit Calculator
Things in the derivatives market also looked optimistic for ETH. Its takers buy/sell ratio was green. It means that buying sentiment was dominant in the futures market.
Additionally, its open interest registered a decline, increasing the chances of a trend reversal.
Source: Coinglass
