Ethereum on-chain metrics set the stage for a rally

remains above the crucial support, the supply of ETH on stock exchanges decreases and the number of new addresses in the network increases.

The central theses

  • Ethereum sits above the support but has been rejected by the $ 3,630 resistance.
  • On-chain data shows that interest in Ethereum is increasing while the supply of tokens available for sale on exchanges is decreasing.
  • If the USD 3,200 support holds, Ethereum could start a rally soon.

Ethereum could soon break the $ 4,000 mark and march to new all-time highs as on-chain metrics turn bullish.

Ethereum prepared for volatility

Ethereum has been relatively stagnant as it appears to be heading for new all-time highs.

The second largest cryptocurrency by market cap has been trading for the most part within a $ 250 pocket since the beginning of the month, defined by the $ 3,380 support and the $ 3,630 resistance level. Despite the lack of volatility, ETH could soon be prepared for a bullish impulse.

The behavior analysis platform Santiment shows that the offer at ETH goes back to trading platforms. More than 19.1 million ETH were idle on well-known cryptocurrency exchanges on October 6th. Around 140,000 ETH have been withdrawn since then, and there are now 18.96 million ETH left.

The falling ETH balance on the exchanges can be seen as a positive sign, as it suggests that the selling pressure behind the asset is also easing.

In addition, the Glassnode data intelligence platform saw a significant increase in on-chain activity. The number of new addresses created on the network every day has increased by more than 115% since October 4th. This figure reached a high of 140,000 new addresses on October 6 and is currently around 91,000 new addresses.

Network growth is often viewed as one of the most accurate price predictions for cryptocurrencies. In general, a steady increase in the number of new addresses created on a given blockchain leads to rising prices over time.

ETH number of new addressesETH number of new addresses

The rising interest in Ethereum combined with the declining supply of ETH that can be sold on the exchanges paints an optimistic picture for the future of Ethereum. While prices don’t have to react to current network dynamics just yet, it seems like only a matter of time before ETH starts its next rally.

The transaction history shows no major delivery barrier that would be possible Ethereum from making new all-time highs. Still, the USD 3,200 support level would have to be a. being held to confirm the optimistic outlook. Falling below such a critical demand zone could lead to a dramatic slump, as the next major pillar is at USD 2,700.

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