Why Ethereum Investors Are Still Concerned Despite ETH’s Recent 9% Gain
With the recent network advancements, Ethereum continues to divide investors. The 4th of July celebrations have sent the bulls in full swing in the cryptocurrency market. Bitcoin has also recovered beyond $20k, establishing a new precedent for the crypto market. But what happens next for ETH?
The holiday greetings have been kind to Ethereum, which had a terrible close to Q2. However, the ambiguity surrounding new on-chain data has divided investors. While trader optimism remains high, ETH continues to accumulate on exchanges. In terms of YTD performance, ETH is trading at a 70% discount.
Nonetheless, the price of ETH has increased by 9.5% since July 4th. It is currently trading at $1,155 following an 83% spike in network volume. According to a Santiment tweet, the price movement is currently displaying both sides of the coin. While rising prices indicate ETH rebound, there is growing concern over exchange inflows.
On closer inspection, ETH is piling up on exchanges and is nearing a 2022 high. This tendency has persisted during the current bearish cycle.
Another update in the Bitfinex futures market has revealed a concerning pattern. According to a Glassnode tweet, ETH perpetual contracts traffic on Bitfinex has dropped to a one-month low of $9,887,684. Despite the fact that this is only one platform, it can be interpreted as a symptom of a weak community.
Furthermore, with the price reversal, the MVRV ratio (30d) has lately increased. However, it remains inexpensive, standing at -8.75%. Ethereum has room to expand in this market.
The last Consensus Call offered the most recent information about the Ethereum Foundation and how the Merge is progressing. According to the meeting, the Sepolia merging activation should be done soon.
The brief also stated that Ethereum is planning its seventh mainnet shadow fork to test the Merge. Developer Marius Van Der Wijden provided an update on the Gray Glacier hard fork’s smooth transition.
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