In the fast-paced world of cryptocurrencies, where XRP and Chainlink have been making waves recently, Ethereum seems to be quietly biding its time at $1,895. However, Santiment, a crypto insights provider, has sparked interest by revealing under-the-radar metrics that might suggest an imminent ETH surge above $2,000.
Following its peak of $2,132 on April 16, 2023, Ethereum has been relatively subdued. The $2,000 psychological support level has become a focal point for traders, who grow optimistic when the price rises above it and skeptical when it struggles to break through.
Bitcoin’s dominance was apparent throughout June after the bullish surge caused by Blackrock and other ETF introductions. In this period, Ethereum moderately gained against Bitcoin with a 4.8% swing. Though not groundbreaking, this development caught the attention of traders.
Surprisingly, ETH’s lackluster price action has led to a decline in discussions about the asset, reaching a low similar to that seen in mid-May 2023. However, history has shown that altcoins often thrive when traders are distracted by other enticing assets, and right now, XRP holds the spotlight.
One intriguing sign indicating an upcoming price bottom is the ratio of on-chain transaction volume in profit to loss. Currently, profit takes still dominates, but the margin is not substantial. If ETH experiences a further drop and hovers around $1,700-$1,800, panic selling might occur, providing an opportunity for strategic buyers.
Self-Custody Boosts Confidence In Ethereum
When analyzing trader behavior, it’s essential to gauge the sentiment of both short and long-term ETH traders. Traders active in the past 30 days have seen an average return of -0.35%, essentially breaking even.
On the other hand, long-term traders active in the last 365 days have enjoyed an average return of 14.9%. The most promising opportunities arise when both percentages are significantly negative, but currently, they are relatively close to neutral.
Moreover, over 93% of ETH is held in self-custody, providing a comforting backdrop for investors. With fewer coins on exchanges, the likelihood of large sell-offs decreases, instilling confidence in the asset’s long-term potential. It is especially reassuring following Ethereum’s somewhat underwhelming halving in September 2022, which failed to produce a price surge.
ETH’s community appears subdued at the moment, a circumstance that often heralds positive developments. While other major assets like XRP and LINK steal the spotlight, patient investors in the Ethereum network may be handsomely rewarded. Santiment’s insights suggest that an ETH return above $2,000 could materialize sometime in August or even before the new month begins.
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