The price of Ethereum’s native token [ETH] has steadily risen from $3,402 to $3,569, a 5% increase in the last week. The uptrend has received significant support from its on-chain metrics, which have turned green since the beginning of October.
Santiment, an on-chain analytics website, centered its report on key components such as Network Growth, Active Address [AA], Market Value by Realised Value [MVRV], Exchange Inflow, and so on. Here’s what the firm discovered when it looked at both on-chain and social data activity on the Ethereum network.
What are Ethereum’s [ETH] tell-tale signs for its growth structure?
It was found that Ethereum [ETH] experienced the greatest increase in Network Growth and Active Addresses [AA] count since reaching an all-time high of $4,168 in May of this year.
With respect to the Active Address [AA] figures, the data looks promising for the price growth as ETH witnessed the highest amount of AA influx since May. It’s noteworthy to mention that ETH for the first time in history crossed the $3,500 mark five months ago this year, the then AA count, too followed suit as evidenced from the graph.
In the case of Network Growth, the graph depicted an unexpected surge in the metric which is the highest since June 2021. The sudden uptrend points towards a possible short-term price surge phenomenon, according to the report. However, some speculators linked the temporary uptick to recent developments such as Mekaverse amassing non-fungible token [NFT] worth $60 million in sales on Ethereum which generated huge network activity by market participants. Nevertheless, the upswing trend is a piece of good news for future price prospects.
That being said, the report further reviewed the network’s health in terms of MVRV and Exchange flow. Regarding MVRV 30D analysis, Ethereum seemed to be treading very close to the difficulty level of 10% but has sufficient room to expand to 25%. However, the report also injected a note of caution with respect to Market Value by Realised Value [MVRV] and Exchange Inflow in the network.
In a separate report, a prominent analyst under the pseudonym ‘Jaydee_757’ predicted Ethereum’s price might see an astonishing 7,000% increase after witnessing the formation of a fractal indicator from 2017 this year. According to the findings of the analyst, if history repeats, Etheruem could hit $13,000 in the next couple of months.
Despite the bullish cues observed by the above metrics, sell-side pressure continues to haunt the altcoin’s price structure. Santiment noted,
“Seems there might be a little bit more sell-side pressure to be absorbed around price resistance level. That might be a little bit difficult for Ethereum.”
