Supply and demand dynamics could cause Ethereum to enter the pricing zone
- Ethereum has had a steady rally, hitting ATH at $ 4,440 and is currently still trading at $ 4,304.
Ether price chart | Source: Tradingview
As price predictions and a race for a new ATH emerge in the market, Ethereum‘s supply dynamic has been telling a different tone, a beautiful tone (in favor of the bulls).
In particular, the number of active ETH addresses has risen steadily over the past month, which was crucial in setting a new ATH to 4,440 on October 29th. This incremental benefit continues to be one of the main drivers behind the price hike.
The good news is that active addresses stay high, as does the Ether price. In addition, the number of new addresses rose sharply, which shows the increased market euphoria and the influx of new participants into the network. The number of new addresses rose by more than 65% in less than a week.
It’s worth noting here that Ethereum hit a new ATH after the day’s circulating token issuance hit a record 1.74 million, creating a bullish divergence. Overall, the on-chain metrics appear to be quite healthy as the benefits appear to be increasing too.
Supply and demand could cause ether to enter the pricing zone
For the fourth time since May 2021, Ethereum hits $ 4,400 ATH. During this time, the supply and demand of Ethereum have changed drastically. As Cointelegraph reported, the supply of Ethereum available on exchanges has dropped 18% in just 5 months, which is over 4 million ETH.
One post on CryptoQuant emphasized how the aforementioned trend could soon bring ether into the pricing zone based on the dynamics of supply and demand.
However, in the near future, one possible scenario for Ether is to break the 5,000 resistance and then continue to rise. Analyst Michaël van de Poppe also noted that Ethereum’s next target could be $ 6,000.
– Michaël van de Poppe (@CryptoMichNL) October 29, 2021
It is noteworthy that, according to data from Skew, almost 102,000 call options are placed at USD 5,000 for Ether. So it looks like a large part of the market is expecting Ether above $ 5,000.
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According to AMBCrypto