Crypto analytics platform Santiment says under-the-radar stats indicate that Ethereum (ETH) could rise above a key psychological level and beyond.
Brian Quinlivan, Santiment Marketing Director say that one of the statistics suggesting an upward movement for Ethereum is the crypto asset’s win-loss ratio from on-chain transactions.
According to Quinlivan, while the statistic is currently in a positive zone, it only needs to fall marginally to trigger strong demand and, consequently, an upward movement.
“An important sign of a possible approaching price floor would be when traders start taking a higher number of trades while making a loss, compared to when they make a profit. At this point, we can see that the ratio of on-chain transaction volume to profit and loss is still in favor of profit taking. But certainly not by a large margin… and if ETH drops a bit further from here and threatens the $1,700-$1,800 level again, panic selling would pour in to justify the purchases.”
Santiment’s director of marketing goes on to say that Ethereum’s supply on exchanges is below 10%, and this is another bullish signal.
“We can also remain satisfied with the fact that Ethereum coins are overwhelmingly held in self-custody. With less than 7% of coins on exchanges, the probability of a huge sell-off remains lower than usual. This should be considered one of the best signs of long-term confidence for the asset that experienced a somewhat disappointing halving (price-wise) in September 2022.”
In September 2022, the Ethereum merger took place converting the second largest crypto asset from a proof of work consensus mechanism to proof of stake.
In terms of price target, Ethereum is likely to hit amid the above stats flashing bullish, says Quinlivan,
“Patience tends to pay off, and we see no reason why ETH can’t take a step back above $2,000 sometime in August, or even before the new month hits.”
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