Ethereum's price movement hinges on five pivotal indicators, including whale netflows and transaction growth, according to IntoTheBlock. Mixed signals emerge as ETH trades at $3,323, with long-term investors continuing to hold amid rising Layer-2 adoption.
IntoTheBlock Releases Ethereum Research Amid Bitcoin Focus
While the entire market is glued to Bitcoin's every move, IntoTheBlock has released a research regarding Ethereum.
According to IntoTheBlock(via U.Today), there are a number of possible resistance places ahead on the Ethereum chart based on the current on-chain activity. They might, however, turn out to be meaningless in the present market. Furthermore, with selling pressure at a minimal, many Ethereum owners are anticipating a price increase in the near future.
Five Key Indicators for Ethereum's Price Trajectory
For a better understanding of the potential future trajectory of the Ethereum price, traders and investors can refer to the five key indicators identified by the data source stated earlier.
One of them is the daily transactions on Ethereum. If this indicator goes up, it means the network is busier, which could mean more people are looking to buy Ethereum.
Large holder netflow is the second one. Big wallet owners, or "whales," track the net movement of Ethereum in this one. Keep an eye on this signal because when whales start buying Ethereum, it shows their trust in the asset's long-term value and dampens sale pressure.
Short-Term Holders and Coin Holding Duration
Thirdly, the number of addresses of short-term holders. In particular, it monitors the short-term's speculative activity with their ETH. There may be a shift in public sentiment towards Ethereum once the number of short-term investors increases.
The duration of time that coins are held is the fourth indication.
The continued increase in demand for Ethereum is indicated by the fact that long-term holders are choosing not to sell their ETH when this signal dips.
Exchange Inflows and Outflows Signal Market Intentions
In this context, exchange inflows and outflows are last but not least. An key indicator of investors' intentions to sell is a huge inflow of Ethereum into an exchange, whereas a large outflow indicates accumulation and long-term holding, therefore keeping an eye on this volume is crucial.
But at the moment, these critical indicators are giving conflicting signals, as reported by IntoTheBlock. Compared to levels seen during prior bull markets, the new ETH wallet count remains below. This is perhaps because Layer-2 solutions have become more prevalent.
Once again, the daily transaction count is fewer than it was during the prior bull markets, but it has climbed somewhat. As a result of major holders' continued purchase of ETH and demonstration of faith in its long-term potential, the volume of transactions continues to expand. Ethereum is now selling for $3,323.