Coinworld reported:
The activity on the Ethereum (ETH) network continues to rise, with significant price increases. Demand for ETH in the market is surging, and it is anticipated to break through the $3,000 mark. Inflows into Ethereum ETFs have turned positive, indicating bullish sentiment among investors towards ETH. Additionally, the number of open contracts and financing rates for ETH have increased, suggesting a growing demand for leveraged long positions. Furthermore, the trading volume of Ethereum DApps has surged, further boosting ETH’s market performance.
The sustained increase in Ethereum’s network activity not only showcases a strong price trend for ETH but also indicates that it has surpassed Bitcoin in key market metrics. With the rise in open contracts and financing rates, the enhanced meme wealth effect on Ethereum and the noticeable network growth suggest that demand for Ethereum is rapidly peaking. In light of this series of favorable developments, many investors are beginning to anticipate whether ETH can continue to rise and break through the $3,000 threshold, becoming a key player in the next bull market.
In the past week, ETH has risen by 17.5%, significantly outperforming Bitcoin’s 9.8% increase during the same period. Recently, the ETH/BTC trading pair dipped to a three-year low of 0.0384, but has surged approximately 7.5% in the past week, exceeding a three-week high of 0.0424 on September 23. This consumption of ETH/BTC has triggered a notable increase in demand for ETH in the market.
Ethereum trading volume surges: A bullish signal?
Ethereum’s trading volume has seen a substantial increase, rising by 79.30% in the past 24 hours to reach $28.21 billion at the time of publication. This surge typically indicates a growing interest among traders, which often leads to heightened price volatility. Thus, if buyers continue to dominate, the increase in volume could propel the market upward. However, if volume declines without subsequent buying support, it may indicate indecision, potentially leading to a price drop.
On-chain metrics: Mixed signals for Ethereum
By examining on-chain metrics, AMBCrypto has identified several signals. The net network growth rate for Ethereum remains neutral at 0.19%, indicating no significant influx of new users. However, the in-the-money metric, which measures how many investors are currently in profit, shows a bullish reading of 11.21%. This suggests that a considerable portion of Ethereum holders remains profitable, which could alleviate selling pressure and support price stability. On the other hand, metrics such as concentration and large transactions also exhibit neutral trends, with no significant changes in whale accumulation. Therefore, while whale deposits to Kraken suggest a revival of market activity, they have not yet triggered a significant shift in Ethereum’s on-chain dynamics.
Bulls hold the advantage
The long-short ratio slightly favors the bulls. As of September 23, 52.28% of traders hold long positions, while 47.72% are shorting the market. This slight majority indicates that traders are inclined towards further price increases for Ethereum. If this ratio continues to favor the bulls, Ethereum may maintain its upward momentum.
Recent whale activity and a significant rise in trading volume for Ethereum suggest bullish potential. However, the mixed signals from on-chain metrics indicate that the market remains cautious. The long/short ratio gives a slight edge to the bulls, but broader market dynamics will ultimately determine the direction. ETH’s strong performance is also reflected in the recent decline of Bitcoin’s market dominance. Data shows that Bitcoin’s market dominance fell from 58.7% on September 19 to 57.4% on September 24, indicating a weakening performance of Bitcoin relative to altcoins like ETH.
Conclusion
With the initial step of Bitcoin’s dominance, the market expects the ETH/BTC ratio to rise further, enhancing bullish sentiment for ETH. The continued growth of the Ethereum network, increased trading activity, and rising DApp usage are all key drivers in maintaining ETH’s price above $2,600.
