The DeFi hysteria has significantly had not only helped Ethereum but has also impacted the ETH miners. But now it appears that the miners of the network were dumping coins across various cryptocurrency exchanges. This was revealed by the crypto intelligence platform, Santiment which further revealed that last week’s increased FOMO involved with the on-chain activity, and the trader has faded. Following which the crowd sentiment has flipped back to bearish.
But it does not necessarily indicate a negative picture. Not yet.
More than what meets the eye
Ethereum’s price seems to have stagnated when compared to Bitcoin. While it did break above the level of $400, the stint was rather short-lived as it sustained a minor pullback and was currently trading at $396. This correction to a local low was something that has been materialized every time there was a spike in the ETH’s Token Age Consumed.
The metric, Token Age Consume, essentially indicated the number of tokens changing addresses on a particular date, multiplied by the days since it last moved. In short, it provides data on the movement of coins that has been dormant for a long time. Hence, the spike noted in the above chart denoted that a significant amount of previously dormant coins were moved either between exchanges or wallets which sparked a minor sell-off resulting in the pullback in question.
Since the local bottom has now been formed, there could be potential short-term behavioral shifts among the market stakeholders in the coming days and Ethereum could see rising pressure from the buyers’ end.
The role of decentralized finance in Etereum’s price surge has been tremendous and DeFi market’s total value locked is continuously increasing. As of the 26th of October, the TVL figure was registered at $12.39 billion on DeFi Pulse’s website. This was another positive indicator that depicted Ethereum’s capability for an uptrend.
The ETH price candles were supported by both the 50 [Pink] and 200 [Purple] daily moving averages. The 200 DMA was hovering below the 50, depicting a bullish picture for the coin. In addition, the RSI was well above the 50-median line but was not in the overbought territory. This depicted a sentiment of rising buying pressure and not its exhaustion among the market participants.
It is also important to note that there is no fear of missing out [FOMO] and erratic behaviors from investors in the market. That not only indicated the market heading towards a tad big more maturity but also that the uptrend is likely not overextended.