Ethereum (ETH) has emerged as a standout performer this weekend. Despite the recent market crash that saw the price of ETH plummet by 25% between March 20th and 13th, the second-largest cryptocurrency has bounced back, currently trading above $3,600, up 4% on the day.
According to Santiment, a leading on-chain analytics platform, a crucial metric for Ethereum has hit an all-time high, signaling a potential bullish continuation. The number of Ethereum addresses holding coins has soared to a 118.23K, surpassing previous records.
This on-chain metric is significant as it reflects the growing adoption and accumulation of Ethereum by investors and traders. As the number of addresses holding ETH increases, it suggests a heightened level of confidence in the network and its underlying technology.
Historically, such milestones have often preceded substantial price rallies, as more investors join the Ethereum ecosystem. Additionally, Santiment reported that the mid-term MVRV (Market Value to Realized Value) ratio for Ethereum is displaying a mild bullish signal.
The MVRV ratio is a metric that compares the current market cap of an asset to its realized cap, which is the aggregate value of all the coins at the prices they were last moved. A positive MVRV ratio indicates that the current market price is higher than the average price at which investors acquired their holdings, suggesting potential for further upside.
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Show more +Diving deeper into the technical indicators, the Moving Average Convergence Divergence (MACD) line is currently above the MACD signal line, a bullish signal often used by traders to identify potential trend reversals or continuations. Furthermore, the Relative Strength Index (RSI) stands at 71, indicating that Ethereum is in overbought territory, which could precede a potential price correction or consolidation.
However, the 20-period Exponential Moving Average (EMA20) for Ethereum is currently at $2,800, suggesting that the current price level is well supported and could serve as a potential buy zone for traders and investors who missed the initial rally.
As the highly anticipated Bitcoin halving event approaches in April, many analysts believe that Ethereum could continue its impressive performance, potentially challenging its all-time high in the coming weeks. The halving event, which reduces the issuance rate of new Bitcoin, has historically been a catalyst for bullish momentum across the broader cryptocurrency market.
#Ethereum to $10,000 is only a matter of time IMO
— Crypto Tony (@CryptoTony__) March 30, 2024
With Ethereum’s robust on-chain metrics, favorable technical indicators, and the impending Bitcoin halving event, the stage is set for the second-largest cryptocurrency to outperform its altcoin counterparts and potentially embark to a next leg up in this bull run.
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