Ethereum Price on its Way for a Possible Short-Term Top
During the past several weeks, Ethereum (ETH) went through some major downside corrections. With its altcoin, ETH showed a rather flat month, concerning price action. But that was not the case when a few other on-chain metrics are put into consideration.
Recently, in the development of the world’s largest altcoin, Ethereum displayed an increase in its daily active addresses. And this recent surge saw the metric touch a level unseen since May 5, 2018. The crypto-analytics platform, Santiment, observed this.
It tweeted, “The number of daily addresses interacting with ETH has spiked in the past 24 hours to A 2-YEAR SINGLE DAY HIGH of 486,000 addresses! The last time Ethereum’s address activity was this high was on May 5th, 2018.”
In addition to that, the spike in the daily active addresses of Ethereum had previously coincided with a powerful price rally on the charts. When the figures hit this level the last time, the cryptocurrency hit a local top of $825.
With that, the present scenario might also indicate a growing accumulation trend in the market. And people didn’t see this for a long time as exchange balances further increased. This might also suggest a trend reversal and an inkling of a local top forming in the short-term, as Ethereum was trading at low price levels.
Accumulation Trends
Meanwhile, accumulation trends have been developing for the last few days. And Glassnode evidenced this by revealing a boost in the number of addresses holding 0.1+ Ethereum. They found this figure to stagnate briefly. However, it seems to have picked up the pace following this. Also, the number of addresses holding 100+ coins showed a significant rise. It went up to a new ATH of 52,755.
Aside from that, this is not because of the small and big investors. It is the result of the miners who have been accumulating Ethereum. ETH miners have overall increased their balance ahead of the soon to arrive network upgrade, Ethereum 2.0. Thus, the market participants in the ETH blockchain might be expecting a potential near-term price boost. And this anticipation might have propelled this behavior.
Recently, Ethereum hit a 2-month high when it comes to Token Age Consumed. And this could indicate a possible downside correction. But, on the other hand, the movement of dormant tokens could reverse this into something positive. It would then continue to solidify the argument backing a positive price trend.
Currently, Ethereum is valued at $225.94 – its 24-hour trading volume at $6.5 billion.
Market Gap Growth
In a report from crypto market data aggregator Messari, the market cap of leading stablecoin Tether (USDT) has exceeded $10 billion for the first time.
With Bitcoin (BTC) and Ethereum, Tether is now one of the three crypto assets with an eleven-figure capitalization. It reported a $10 billion market cap, coming after a year-to-date growth of 144%. In fact, Tether represented $4.1 billion at the beginning of 2020.
But still, data aggregators are at odds with Tether’s capitalization. This is because CoinGecko and CoinMarketCap estimated ESDT’s market cap to be more than $9 billion.
