According to U.Today, IntoTheBlock has released a report focusing on Ethereum's on-chain activity, highlighting several potential resistance points. Despite the market's attention on Bitcoin, Ethereum owners are optimistic about a price increase in the near term, with minimal selling pressure observed.
The report identifies five crucial indicators for traders and investors to monitor, which could provide insights into Ethereum's future price movements. The first indicator is Ethereum's daily transactions, which, when rising, suggest increased network activity and potentially higher demand for ETH. The second is large holder netflow, measuring the net movement of Ethereum by large wallet owners, often referred to as whales. An accumulation by whales indicates their long-term confidence in Ethereum and reduces potential sell pressure.
The third indicator is the short-term holder address count, which tracks speculative activities by short-term investors. An increase in this count may signal growing retail interest in Ethereum. The fourth indicator is the holding time of transacted coins. A decrease in this metric suggests that long-term holders are retaining their ETH, while demand continues to rise. Lastly, exchange inflows and outflows are crucial to monitor, as large inflows indicate selling intentions, whereas significant outflows suggest accumulation and long-term holding.
Currently, IntoTheBlock notes that these indicators are presenting mixed signals. The number of new ETH wallets remains below levels seen in previous bull markets, likely due to the growing popularity of Layer-2 solutions. Although the daily transaction count has increased, it is still lower than during past bull markets. Nevertheless, transaction volumes continue to grow as large holders accumulate ETH, demonstrating confidence in its long-term potential. At present, Ethereum is trading at $3,323.
