Ethereum [ETH] has been beating the market on many fronts. The cryptocurrencies appeared to be recovering after the May setback. The investor sentiment was still in the bearish territory but there could be a reversal in this trend in the near term.
According to the recent on-chain analysis, the world’s largest altcoin’s sell-side pressure was found to be diminishing more and more which provided a window hope for Ethereum’s price movement.
What does Ethereum on-chain metrics depict?
After weeks of failed attempts to reclaim the psychological level of $3k, Ethereum might finally see a respite. This was according to the crypto intelligence platform, Santiment. The cryptocurrency saw a massive panic selling on the 28th of May spike, at the bottom.
This was when the investors went on to accrue significant profit when the price was near $2.6K. However, there has been a change in this trend. While exchange deposits still remain high when compared to the entire six months period, but less and less Ethereum was moving to these platforms. This demonstrated a sentiment of holding among the market participants.
In addition, the ETH active addresses were also growing which was a sign of more activity in the coin market that could potentially catapult its price back to the recently established highs. In fact, Santiment also revealed that the figures were much stronger than Bitcoin.
“It’s not looking bad. At least from the perspective of social data and on-chain data. Rebounded quite viscerally in the last 10 days. Much stronger than Bitcoin. And it continues to grow, which is good for ETH.”
On the other hand, the fee on the Ethereum network was hovering close to its lowest ever level this year which was another good sign for the market. This can be attributed to the migration of many users to Polygon as well as fewer users were swapping stuff on mainnet.
While there are some encouraging signs in the short-term, the 36-day MVRV is yet to dip into negative at all. Meaning the profit-taking phase by the long-term holders is not yet over. On the flip side, upon gauging this bull cycle, the chances are fairly low, in fact, lowest since November 2020.
According to Santiment, a profit-taking phase could, at the very least facilitate more price appreciation, even compared to the previous rally.