He crypto-industry-faces-new-threat-section-702-us-surveillance-bill-passed/” rel=”nofollow”>crypto market has been plagued by increased volatility lately, with the second largest crypto token by market cap, ethereum-fees-lowest-since-january-bottom-signal/” rel=”nofollow”>ethereum (eth), not exempt. This has made it more difficult to determine ethereum's future trajectory. However, certain metrics indicate which direction the eth price could go when this volatility subsides.
ethereum investors are optimistic
Data of Coinglass shows that the majority ethereum Investors and traders remain bullish on the crypto token despite recent price fluctuations. Specifically, most of these traders have continued to open long positions on ethereum, meaning they are betting on it to experience significant long-term bullish moves.
The bullish sentiment towards ethereum is highlighted by a trader who, after losing $4.5 million while craving eth, is still x.com/lookonchain/status/1781970017103597741″ rel=”nofollow”>Opened another long position in the second largest crypto token. This ethereum-accumulation-in-top-gear/” rel=”nofollow”>crypto whale He even went so far as to borrow 17.3 million USDT from Compound just to increase his position in ethereum.
The optimism of these investors about ethereum is even more commendable, considering that the bulls have suffered the most from eth's high volatility. Data Coinglass shows that more than $16 million in long positions have been liquidated in the last 24 hours, compared to the $10 million of short positions that have been liquidated during this period.
Meanwhile, eth/deep-dive?group=all&chart=all” rel=”nofollow”>data from the market intelligence platform In the block shows that ethereum crypto%20analyst%20Ali%20Martinez%20has,to%20as%20high%20as%20%241.” rel=”nofollow”>Market Value to Realized Value (MVRV) The ratio has decreased, indicating that many ethereum holders are still not making profits. This could be bullish for eth price as these holders will likely hold their positions in anticipation of further bullish price action, thus providing support against any potential price decline.
Defend the bears
While activity in the derivatives market and ethereum's MVRV index paint a bullish outlook for the crypto token, ethereum's ethereum-roadmap-buterin-reveals-plans-the-purge/” rel=”nofollow”>network growth suggests that eth could still see further price declines. Data de Santiment shows that the speed at which new users enter the ethereum ecosystem has slowed recently.
This decrease ethereum-usage-skyrockets-eth-hits-two-month-high/” rel=”nofollow”>network growth It is also evident in a recent report from Bitcoinist, which ethereum-fees-lowest-since-january-bottom-signal/” rel=”nofollow”>noted that ethereum fees have fallen to their lowest level since January. bitcoin-flips-ethereum-in-fees-will-this-last/” rel=”nofollow”>ethereum fees They are known to trigger when there is increased activity on the network. Therefore, low rates mean there are fewer new users. crypto-100-8-3-million-ethereum/” rel=”nofollow”>currently transacting on the network or even have the eth token.
However, the positive side is that data de Santiment also shows an increase in speed, suggesting that existing users on the network are actively trading and injecting more liquidity into the ethereum ecosystem. This factor could also contribute to potential eth token price increases.
At the time of writing, ethereum is trading at around $3,200, which represents an increase in the last 24 hours, according to ethereum/” rel=”nofollow”>data from CoinMarketCap.
x/PzxHPXkH/” alt=”ethereum price chart from Tradingview.com” width=”3286″ height=”1530″ loading=”lazy”/>
eth bears pull price below $3,200 | Source: ETHUSD on Tradingview.com
Featured image from Token Information, chart from Tradingview.com
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