Could Ethereum See Another ATH This Year?
Ethereum is finally showing signs of improvement after falling nearly 30% from a local high of $ 3,800 in September. The flash crash and subsequent FUDs pulled total crypto market cap down nearly 20% over the past three weeks. However, investors expect ETH to close the quarter on a high.
The Ethereum Relative Strength Index (RSI) has shown increased buying pressure in the shorter time frame, which is a good sign. However, the trading volume on the spot market for ETH remains low and this shows the reluctance of market participants after the crash.
While the market is still skeptical about ETH’s path to the fourth quarter, there are some signs that it is on a good growth path and could see massive gains before the end of 2021.
Long-term indicators look good
It is noteworthy that in the past year a third of the ETH offer was withdrawn from the stock exchanges, which shows the patience of the hodler even during a market crash.
In fact, tokens in circulation soared on September 27th, hitting their highest level since June 22nd. Santiment pointed out that as the utility of ETH and the tokens in circulation continue to increase, the price will inevitably follow.
At the time of writing, the ASOL indicator has seen low levels, last seen in March, and in general, low levels are an indication that young coins are being issued. This also means that the old coin is still inactive and the HODL trust is high.
An interesting trend is that a low ASOL often marks the start of a rally. The last time the indicator hit a low, ETH price rose over 150% to hit an ATH of $ 4,337.
All eyes are on Ethereum?
JPMorgan analysts highlighted how big investors are turning their attention to Ethereum in a recent report. Bitcoin futures saw weak demand as they traded below the spot price while the Ethereum futures premium rose 1%, showing a sharp divergence in demand for ETH, according to the report.
Given the rate of price increase and institutional capital inflow, could Ethereum see another ATH? While this is a question of “when” rather than “if”, ETH active addresses are showing a worrying sign as they are trending downward and are currently hitting January lows. Ethereum’s previous rally was aided by highly active addresses as well as dynamic network activity. This time, too, this could push ETH to a higher level.
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According to Ambcrypto