August 17, 2020
Over the past few weeks, Ethereum has been on a notable rally. From the outset of July, when the asset was trading near to $220, ETH has factually doubled. It trades just near $440 as of writing, level in the past 24 hours.
While some see this move as a spontaneous surge that isn’t maintainable, on-chain metrics display that Ethereum is in the perfect place. It adds to the positive technical signals that ETH has formed over the past few months.
On-Chain Fundamentals of Ethereum are Bullish
Santiment, a blockchain analytics firm, says that Ethereum is in a good place in terms of its fundamentals. They noted in a recent analysis that two essential on-chain metrics are nearing or are at all-time highs:
“The $ETH daily transaction count neared an all-time high this week. It’s ATH of 1.34M was set back on Jan 4, 2018, when #Ethereum had an average market price of $1,042. Earlier this week its transaction count was within shouting distance at 1.27M. $ETH transaction fees also broke all-time highs two days in a row, with fees of 17.8k $ETH (8/12) and 20.3k $ETH (8/13).”
These two metrics reaching these levels “is a good long-term sign of things to come for #Ethereum holders.” Santiment declares.
Peripherally linked to this, analysts have found that there is somewhat of a correlation between Ethereum network activity and the value of ETH. This is likely because to send transactions interacting with Ethereum, ETH must be spent.
Incidentally linked to this, analysts have found that there is somewhat of a connection between Ethereum network movements and the value of ETH. This is likely stated from the fact that to send transactions relating to Ethereum, ETH must be consumed.
Technicals Validate Prospects of Upside
Technical analysts also consider Ethereum is in a good position from a short-term and longer-term perspective.
The head of technical analyst at Blockfyre, a cryptocurrency research firm, said:
“$ETH looking ready for another leg up IMO. $450 weekly resistance up next on the plate. Wouldn’t be surprised to see a lot of this alt money flow into Eth and see some healthy corrections across the board short term. Reducing some exposure to moving to Eth.”
Speaking on Ethereum’s long-term outlook, the same trader who predicted the point at which BTC would go down in 2019, noted recently that ETH has upside because its one-month MACD has crossed into the green.
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