Categories: Market

How Does A Sideways ETH Price Affect This

ETH is known as the “big brother of Altcoins”. But are other ETH Altcoins currently following exactly? Doesn’t look like it. While some altcoins are rising and others falling, ETH doesn’t move much. In addition, the lack of movement on the price chart has more of an impact on the spot and derivatives markets.

ETH 4-Hour Price Chart | Source: Tradingview

Effect of the sideways price

First, investment flows in ETH futures are showing signs of slowing. The trading volume on this futures market reached a 6-month low today.

Dimensions contract future ETH | Source: Skew

The main reason for this anomaly could be the low price volatility. ETH hasn’t moved much in the last 4 days and only changed 1.05%. After a good start to the month, consolidation isn’t the worst, but it isn’t the best either.

As a result, spot volume slowed and fell to a 7 month low.

The effect can be seen in the validators of the week. Because if the number of transactions decreases, so does the validator’s turnover. Currently, validator sales are at a 9-month low of just $ 510,000.

Miners’ income ETH (Validator) | Source: Glassnode

Due to the lack of on-chain transaction activity, the consumption of gas fees also hit its lowest level in more than 45 days. As the number of transactions decreases, you will have to pay fewer fees.

So ETH is it possible to fix this?

ETH doesn’t, but investors can. The number of short-term owners (1 day – 3 months) is currently peaking after many months. Your enthusiastic contribution can help reactivate price volatility.

Number of holders ETH from 1 day to 3 months | Source: Glassnode

In addition, it can be more optimistic if over 96.83% of the addresses are profitable. These are the highest numbers that ETH investors have ever seen.

Number of locations only ETH is profitable | Source: Intotheblock

So if both short-term and medium-term owners keep HODL and don’t sell, ETH will likely rise again. This makes the current scenario a pause instead of a pause.

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Minh Anh

According to AMBCrypto

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