With the accumulated market capitalization back above $ 2 trillion, all eyes are on the top two cryptocurrencies. Bitcoin Escaping from its recent consolidation has created room for the king coin and altcoins to move higher.
Ethereum was quick to follow BTC’s uptrend as it retested the $ 3,300 mark on August 20 and then again, at the time of writing. But, the important question remains the same: will ETH sustain this? meeting and defaulting on $ 3500?
An increase in tickets
Although Ethereum is down 0.92% from last week, it was up 2.33% in the last 24 hours. However, even with these price increases, ETH trading volumes showed no further spikes. In fact, they were down nearly 50% this week, compared to last week.
However, an increase in inflows was identified by the rally in the RSI at press time.
ETH’s RSI has just entered the overbought zone again and if it swung there over the next weekend, the chances of the altcoin rising to $ 3,500 will be high. After Ethereum broke its uptrend in the middle of the week, the sell-offs stopped when its price candle tested the 20-day SMA.
With ETH seeing gains at press time, the SMA is back as support. Ethereum could continue its uptrend if the aforementioned metrics hold up over the weekend.
The way looks clear
The Production Spent Profit Ratio (SOPR) (30-day moving average) for Ethereum has been on an upward journey since July 20. At the time of writing, the indicator was in line with ETH’s bullish trajectory and its value was in line with the levels seen during the April rally. While the SOPR helps identify reversal, historically a sharp rise in it has been ideal for a rally.
Additionally, Ethereum’s Liveimonys was equivalent to its May 18 levels, showing a higher build-up that was good for the alt’s price trajectory. This meant that a high proportion of the coin supply is idle, implying an increase in HODLing’s performance. He also suggested that the global Coin Day accumulation has been outpacing Coin Days Destroyed for Ethereum. With more push from the bulls, $ 3,500 for Ethereum wouldn’t be too far off.
In addition, the average level of gas fees per transaction has been decreasing.
What indicated by Santiment, “… is a good sign that traders will not stagnate in the circulation of $ ETH due to additional costs.”
Finally, despite all the optimism of the moment, it is best to take everything with caution. Also, since this rally involved fewer participants due to a steady decline in daily active addresses (DAAs), ETH would need more crowds for a sustained rally.
A downward slope in the DAA meant that unlike the May rally, this rally is not supported by as many participants. Whether it will hold up well and lead Ethereum to new ATHs will only become clear with time.
This is a machine translation of our English version.
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