Your favorite crypto news blog

Some Key Ethereum On-Chain Fundamentals Have Crashed To Dangerous Lows; Should Investors Be Worried?

Altcoins 2020/09/13 23:35 by Brenda Ngari
A 'Price Crash' Could Be Coming For Ethereum As Data Shows 80% Of ETH Supply Is In Profit

The market for cryptocurrencies is in the viridity today after suddenly plummeting earlier in the week. Bitcoin (BTC) is up about 1.47% today to reach $10,323, while Ethereum (ETH) is down nearly 5.73%, trading around $362. Cryptocurrencies surged higher as the stock markets recouped some of their losses from last week’s pullback.

While the price of ethereum is currently striving to trend upward, cryptocurrency analytics firm Glassnode has noted some of the asset’s on-chain fundamentals that are on a decline. Specifically, the ETH balance on exchanges and also wallet balances are at historic lows.

The big question is, does the slowdown in the growth of these on-chain fundamentals threaten the price of ETH, possibly leading to a deeper sell-off?

Ethereum On-Chain Metrics Are Dropping 

According to researchers at Glassnode, the balance of ethereum on exchanges (Id MA) recently slid to a 6-month low of approximately 17,188,000 ETH. This suggests that users are now choosing to hold their coins in cold storage instead of crypto exchanges after the latest sell-off.

Additionally, Glassnode noted in a separate tweet that the number of ethereum addresses holding 1,000 coins and more has also crashed to a two-year low. According to the analytics firm, this figure currently stands at 7,265 which is a bit lower than the 7,270 posted earlier today.

The confluence of a decline in on-chain fundamentals could spell trouble for the ethereum price in the near term. 

ETH is trading at $362 as of press time. Trader MuroCrypto, however, observed that the second-largest cryptocurrency will remain decisively bearish until it is able to break past the resistance at the $380 region.

“$ETH probably breaks 360 resistance this time. However, there’s EMA cluster and supply zone resistance at 380 levels that will high likely push it back down. Until altcoin market becomes more clear I’m scalping.” 

0 Like(s)

You should also read...

Altcoins 19/11/19 18:00 by Christine Vasileva
Ethereum USDT On-Chain Volume Breaks $100 Billion
Tether (USDT) keeps building up momentum on the Ethereum network, potentially creating new flows to and from exchanges. While the supply of USDT remains without change, the velocity of coins increases...
Read More
Altcoins 30/11/19 21:42 by Christine Vasileva
Ethereum (ETH) 2.0 Upgrade May Revive Staking in 2020
Ethereum (ETH) may bring another round of staking enthusiasm if it moves forward to further replace mining in 2020. New Staking Projects Appeared in the Past Year Staking coins may come in fashion ag...
Read More
Altcoins 05/04/20 00:15 by Cole Petersen
The Last Time Ethereum Saw Exchange Balances This High It Rallied 4,600%
Ethereum has been caught within a tempered uptrend in the time following its recent rally from sub-$100 lows, with the cryptocurrency forming a very strong correlation to Bitcoin – which has been fi...
Read More
Altcoins 17/10/20 20:39 by Erie Maxwell
Numerous On-Chain Metrics Turn In Favor Of Ethereum – $500 Next?
Ethereum price is currently $367 after establishing a renewed uptrend on the daily chart. The smart-contracts pioneer remains rank 2 by market capitalization with $41 billion and has experienced a no...
Read More
Crypto 18/10/20 21:00 by Nick Chong
Top DeFi Coins UMA, Yearn.finance, Uniswap Rocket Over 10% Higher
It’s been a tough past few weeks for the DeFi market. Leading coins pertaining to decentralized finance have undergone strong corrections as buying pressure from the summer subsides, resulting i...
Read More