Can Ethereum Bulls Drive Bears Out of the Market?

  • Positive readings of the bull and bear indicators suggest that the price may rise.
  • Ethereum's network was highly valued and could hinder a potential surge.

Ethereum price [ETH] There may have been a loss of 7.30% in the last 24 hours, but assessment of a key indicator suggests that the decline may end soon.

The indicator talked about here is the Bulls and Bears metric provided by IntoTheBlock. This indicator can be measured in addresses or volumes.

However, the focus is usually on large buyers or sellers, as they have a large impact on price movements.

Want to keep the 1% faith

The net negative of the Bulls and Bears indicator suggests larger sell orders than buy orders. In this example, the price of the asset involved may decline.

But for Ethereum, the data showed that the reading was positive, indicating bullish confidence in the price trend. If this metric holds its position in the coming days, ETH may be able to rise to $3,100.

Big buys of ETH are starting to overtake big bears

Source: IntotheBlock

However, a failure to maintain the status quo or improve upon it could send the altcoin price below $2,800. When AMBCrypto looked at Ethereum's STH-NUPL, we saw that market participants did not have full confidence in the cryptocurrency.

STH-NUPL stands for Short Term Holders – Net Unrealized Profit/Loss. This metric can gauge the behavior of short-term investors.

Investors panic, but ETH may come to their aid

From our analysis, ETH's massive price action has changed investors' sentiment towards the coin. In March, the metric was in the optimism (yellow) zone.

At the time, holders were confident in ETH's price action. But at the time of writing, that reading has reached the surrender (red) zone, indicating that market participants are in fear.

Data shows Ethereum investors in fear

Source: Glassnode

However, fear can act as fuel for a surge. If STH-NUPL continues to decline, the price of ETH may also decline.

Going forward, a reversal could occur as intense fear could trigger a hard bounce if buying pressure increases.

In this example, Ethereum could aim to rise to $3,500. In addition to this metric, AMBCrypto found another indicator that suggests ETH may recover soon.

This time, we focused on dormant circulation. According to Santiment's on-chain data, the 90-day idle circulation had fallen to 9246.

If the metric increases, it means that coins that have not moved for a long time are starting to change wallets. Sometimes, that means selling old hands.

ETH may rise but the value of the network is higher

Source: Sentiment

Thus, the recent decline implies that long-term Ethereum investors were not selling as much as they did around May 7 and 8.

read ethereum [ETH] Price Forecast 2024-25

However, the Network Value to Transaction (NVT) ratio suggested that ETH may still be overvalued. A low value of NVT indicates its undervaluation.

But for Ethereum, the metric increased, indicating that the value of the network is higher relative to transactions.

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