Can the Latest Ethereum Rally Continue? Two On-Chain Indicators to Consider
If you’re wondering whether the recent Ethereum rally can sustain its momentum, there are two key on-chain indicators that can provide some insights. Despite not matching Bitcoin’s bullish strength, Ethereum has seen a significant gain of 12% over the past week.
Just yesterday, Ethereum reached a price above $1,850, but it has experienced a slight pullback and is currently trading below the $1,800 level.
Whale Transaction Count: Reflecting Behavior of Large Investors
One important indicator to consider is the “whale transaction count,” which tracks the total number of Ethereum transactions involving at least $100,000. These large transfers typically reflect the behavior of major investors who have the capacity to move significant amounts of assets in a single transaction.
Examining the chart for this indicator over the past few months can provide valuable insights into market trends.
Supply on Exchanges: A Sign of Accumulation
The second indicator to consider is “supply on exchanges,” which measures the percentage of circulating ETH supply held in centralized exchange wallets. This indicator has been consistently declining during the recent rally, indicating that investors have been withdrawing their coins from these platforms.
Currently, only 8.41% of the ETH supply is on exchanges, the lowest level since July 2015. Continued withdrawal of coins from exchanges can be seen as a positive sign for Ethereum, suggesting ongoing accumulation by holders.
Hot Take: Ethereum’s Rally Shows Promise Amidst Withdrawals from Exchanges
The data from these two on-chain indicators suggests that despite the recent pullback, Ethereum’s rally may still have room to continue. The whale transaction count reflects the behavior of large investors, and the declining supply on exchanges indicates ongoing accumulation. These factors indicate positive sentiment and confidence in Ethereum’s future prospects. As always, it’s important to keep an eye on market trends and monitor these indicators for further insights into Ethereum’s performance.
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