Ethereum is one of the few altcoins that saw significant growth during the recent rally. At the time of this review, ETH was trading at $ 3,123, up from 75% even more than Bitcoin in the last 20 days. Now that the price is there, why does it feel like something is missing? If you look at the on-chain metrics, the answer becomes visible because the numbers there couldn’t keep up with the numbers here. Is the pessimistic sentiment among investors a reason for this fallback?

Is Ethereum lagging behind? Not in terms of the price action, but the dates definitely are. Data here relates to the performance of investors and this is where they represent their sentiment and how it influences their decisions. The last time Ethereum touched $ 3,000 was in May. If you compare the data from then with what it is now, the difference is significant.

Back then the active addresses went up over 650k and right now they are not even over 500,000. A big reason for this is the investor’s exit during the price drops in June.

Active Ethereum addresses | Source: Glassnode – AMBCrypto

As a result of the exit of investors, the number of transactions also decreased. This transaction loss also had an impact of 200,000 on the daily volume. However, a good reason why Ethereum is still preferred by the community is because of its value. The spent output profit ratio shows whether the coin has fair value or not. And currently, ETH is as valuable as it was in May and is keeping pace with the price. But the one thing that comes to mind with low metrics is, are people selling?

Ethereum SOPR | Source: Glassnode – AMBCrypto

No more HODLing?

In fact it is not. There is minimal sales in the market right now as the indicators of the exchanges show that Ethereum holders are not selling. Active deposits show that deposits on file exchanges have decreased significantly compared to May. This shows that the pressure to sell on the network is quite low.

Active deposits from Ethereum | Source: Santiment

In addition, the balance on the exchanges has fallen by 2 million ETH. That’s roughly $ 6 billion worth of Ethereum sitting either in investor wallets and / or in yield apps. This is a good thing as low sales keep the price as high as possible. But this also shows that investors have become cautious with their money.

As the above data grows, so too could its upward trend. Hence, it is always best to watch the markets.


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