The fall of the metrics was a great opportunity for traders!
Ethereum has been trading well from its ATH of $4,356. This is because of the Bitcoin-fueled corrections in May and the fact that the world’s biggest cryptocurrency failed to register remarkable hikes since then. ETH was nearly 40% off the aforementioned level as of now. This can be a new opportunity for traders!
But, there is still a cause for optimism. While they may have been bad reading for those who hold ETH, it’s on-chain metrics and social data displays signs of normalization. It is not outright bullishness.
To put it simply, the sell-side pressure was dropping consistently in the last 10 days. The holders might not see a wider sell-off in the near future.
The fall in the Exchange Inflows could also be read together with the fall of the daily active deposits.
Ethereum’s dramatic trading
One of Ethereum’s increasingly dramatic trading characteristics in May was how its addresses correspond with the altcoin’s price depreciation. For example, from dates 14 to 24 of May, while the price fell from over $4,300 to lower than $2,000. Active addresses also fell from nearly 800k to just over 150k.
However, the similar metric has risen eventually. In reality, Ethereum’s active addresses have risen at a faster pace than Bitcoin.
These seem to be signs of normalization. But they aren’t the only ones. With Ethereum’s social volume and social sentiment lending credible views into what might be expected from ETH as well.
With all that in mind, it is worth remembering that the stated observations are also signs of normalization. But it is not necessarily signs of ETH going on another bull run anytime soon.
Now, many are arguing that Ethereum’s lack of pace with scaling has opened up a market opportunity for the exchanges like Solana and Binance Smart Chain. But, with its fees falling to the lowest levels from January as a success of Polygon and Arbitrum, it seems that Ethereum might go back to normal soon.
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