History usually recycles itself, and the present is none other than the rhymed version of the past. In this respect, it would not be wrong to claim that such a cyclicality also applies to the crypto market. In essence, past precedents cannot be undermined.
At this point, the largest altcoin in the market is stuck at an indecisive point. Ergo, it makes sense to look back and draw parallels to see if there are any answers.
At this point in time, the spot volumes of ETH / BTC are at the level of mid-April. Notably, it was during this time that Bitcoin hit its ATH of $ 64,000 and the price of Ethereum gained momentum at the same time. The crypto passed the $ 4,000 mark in the weeks that followed. Now that it’s back to its previous level are we heading for a new all-time high soon?
Source: Skew
In order for the price of Ethereum to climb the ladder, trading volumes must increase. As can be seen from the graphic attached here, the spot trading volume of ETH versus Bitcoin has recently decreased. Although there was an increase towards the end of June, the same level could not last long.
In fact, mid-April levels were also that low, but the Ethereum rally got the kickstart it needed from Bitcoin. However, taking into account the current state of Bitcoin, Ethereum’s inertia will extend for a few more days. At the time of writing, ETH was trading around the $ 1850 price band after falling 11% in the past week.
To make matters worse, other on-chain metrics didn’t look convincing at the time of writing. The daily transaction chart has not seen a dramatic increase in the past few days. Based on data from Etherscan, the total number of transactions on the ETH network at the time of writing was nearly 1.2 million. However, the same one easily managed to exceed 1.7 million during the previous rally by ETH.
It goes without saying that an increase in this figure is a prerequisite for the ETH Prize to gain momentum.
Additionally, Ethereum’s near-term ROI didn’t look attractive either. The negative returns on the Ethereum chart (-21% in the last month and -19% in the last 3 months) offer investors no incentive to divert their money into this altcoin.
Source: CryptoQuant
In the midst of the above thorns in the path of ETH, it can be stated that the amount of ETH in exchange wallets has steadily decreased. This now essentially implies that ETH tokens have been moved to private wallets and cold storage. This development, coupled with the growing “staking” hype, has the potential to pull the alternative out of its zone of inertia. In the coming days, however, other key figures would also have to be incorporated.
While Ethereum isn’t in its worst shape right now, hopes of a short-term trend reversal seem unthinkable.
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