Crypto-analytics platform Santiment says hidden metrics indicate Ethereum (ETH) could rise above a key psychological level and beyond.
Santiment’s marketing director, Brian Quinlivan, says one of the metrics suggesting an upward move for Ethereum is the win-loss ratio of crypto assets from on-chain transactions.
According to Quinlivan, while the metric is currently in a positive zone, it only needs to drop marginally to trigger high demand and consequently a move higher.
“A key sign of a possible price bottom ahead would be when traders start to make a higher level of losing trades, compared to winning ones. At this point, we can see that the ratio of trade volume on the profit to loss chain continues to favor profit taking. But not by a huge margin by any means…and if ETH falls a bit further from here and threatens the $1,700-$1,800 level again, the panic selling would come pouring in to justify the buying.”
Santiment’s marketing director further says that the supply of Ethereum on exchanges is below 10%, and this is another bullish sign.
“We can also continue to be satisfied with the fact that Ethereum coins are overwhelmingly held in custody. With less than 7% of the coins on exchanges, the probability of large selloffs is still lower than usual. This should be considered one of the best long-term confidence bodes for the asset which saw a somewhat disappointing (price-wise) halving in September 2022.”
In September 2022, the Ethereum merger occurred, which transitioned the second largest cryptoasset from a proof-of-work to a proof-of-stake consensus mechanism.
On the price target that Ethereum is likely to hit amid previous metrics flickering bullish, Quinlivan says,
“Patience tends to pay off, and we don’t see any reason why ETH couldn’t make a move to get back above $2,000 sometime in August, or even before the new month rolls around.”
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