Key Takeaways:
- Ethereum’s price has been relatively quiet since its peak of $2,132 over three months ago.
- Traders closely monitor the psychological support level at $2,000, reacting to movements above or below this threshold.
- Ethereum’s performance compared to Bitcoin has seen a moderate +4.8% gain, while discussions about the asset have been subdued.
- On-chain transaction volume indicates potential price bottom, and the majority of Ethereum coins are held in self-custody, fostering investor confidence.
A recent analysis has found that Ethereum’s price has remained relatively quiet since its peak of $2,132 achieved just over three months ago on April 16, 2023. Traders now closely observe the psychological support level at $2,000, reacting to any price movements above or below this critical threshold.
During June, Ethereum saw moderate gains against Bitcoin, with a +4.8% swing. However, this performance has not elicited significant excitement from traders, as many have been distracted by other assets like XRP, which has garnered more attention and discussions.
An important indicator to watch for a potential price bottom is the ratio of on-chain transaction volume in profit versus loss. Currently, the volume favors profit takes, but if Ethereum experiences further declines and approaches the $1,700-$1,800 level, panic sells could come into play to justify buying opportunities.
Analyzing trader behavior, addresses active in the past 30 days have experienced an average return of -0.35%, essentially break-even. Meanwhile, long-term traders who have been active over the past 365 days have enjoyed an average return of +14.9%. While both percentages are relatively close to neutral, they suggest a balanced market sentiment.
The positive aspect supporting Ethereum’s price stability is that the majority of ETH coins are being held in self custody, with less than 7% residing on exchanges. This reduces the likelihood of significant sell-offs and instills investor confidence.
The Ethereum community’s current quietness may bode well for future price movements. Similar patterns have historically led to favorable outcomes when traders are focused on other assets. With patience as a virtue, Ethereum could potentially make a move to reclaim the $2,000 mark, possibly before August arrives.
All in all, Ethereum’s price has experienced a period of subdued market sentiment, but the ongoing strategic upgrade holds the potential for a price surge in the near future. As the community keeps a watchful eye on the psychological support level and closely monitors on-chain transaction volume, there is optimism that Ethereum could regain its momentum.
Source
https://insights.santiment.net/read/ethereum-enjoying-its-time-under-the-radar-7342
