After being in a constant uptrend, Ethereum lately registered a downtrend together with a number of different cryptocurrencies.
After hitting the bottom mark of $911 in mid-June, ETH gained sturdy upward momentum and even crossed $2,000. This gave hope to buyers of brighter days forward.
Nonetheless, issues took a U-turn on 14 August as a development reversal kicked in. With a destructive 19% 7-day development, the king of altcoins traded at $16,180 with a market capitalization of $197,496,029,109 on the time of writing.
Apparently, the plunge in value didn’t have an effect on the coin’s a number of important on-chain metrics.
Think about this- ETH’s variety of non-zero addresses reached an all-time excessive of 85,252,481. With elevated belief in Ethereum just a few weeks forward of the much-awaited Merge, can we anticipate a bull rally?
Exploring the reply by way of metrics
As we method the day of the ETH Merge, not solely did the variety of accounts with non-zero balances improve, however the provide held by prime addresses additionally elevated regardless of the plunge within the coin’s value.
After registering this month’s low on 14 August, the quantity elevated whereas Ethereum’s value fell.
Evidently, HODLers have been anticipating a value enhance put up Merge.
Right here, it must be famous that the entire trade influx quantity decreased lately, which could be taken as a bullish sign.
Furthermore, ETH’s social dominance additionally skyrocketed to almost 21%. Thus, suggesting an elevated curiosity from the neighborhood.
A have a look at Ethereum’s 4-hour chart, at press time, urged a bearish higher hand available in the market.
After an enormous bull benefit, the Exponential Transferring Common (EMA) ribbon indicated a development reversal.
On the time of writing, the 55-day EMA was significantly above the 20-day EMA.
Undoubtedly, ETH’s value, at press time, was in a excessive volatility zone as indicated by the Bollinger Band (BB). This hinted at a value crunch that would quickly be anticipated.
Nonetheless, the main indicator MACD confirmed a unique image, because the blue line was on the verge of flipping the pink line, which factors in direction of a bullish momentum.
RSI’s information complemented the info of MACD because it confirmed that Ethereum rebounded from the oversold zone, decreasing the probabilities of an extra plunge.
Due to this fact, coupling the metrics and market indicators, a slight risk arises of Ethereum gaining northbound momentum within the coming days.