These On-Chain Indicators Offer Insight Into the Next Ethereum (ETH) Price Action

Bhushan Akolkar
December 9, 2022
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Ethereum price Tags $1,500 As Global Stock Market Crash Triggers Circuit Breakers

The world’s second-largest cryptocurrency Ethereum (ETH) has also been under strong selling pressure moving to $1,200 amid the market shakeout caused by the FTX collapse. As of press time, ETH is trading 4.3% up at a price of $1,282 and a market cap of $156.9 billion.

The on0-chain indicators hint at new interesting developments. Over the last year, the Ethereum shark and whale addresses have been shedding much of their supply. But since the FTX collapse last month, there’s an interesting trend reversal observed.

Since the implosion of the FTX exchange, all the Ethereum addresses holding between 100 to 1m coins have accumulated 1.36% of the overall ETH supply. This jump in the total large addresses of Ethereum hints at a bullish momentum going ahead.

Courtesy: Santiment

Ethereum (ETH) Social Volume, Dominance, and Exchange Supply

Since the Merge event in mid-September 2022, the discussion around Ethereum has been on a decline. Since late October 2022, the discussions around Ethereum have dropped to the lowest percentage among the top 100 assets. On-chain data provider Santiment notes:

The lack of interest since The Merge event is indicative that whales, could push up prices with little resistance, making this a bullish metric.

Courtesy: Santiment

Another bullish indicator is that the ETH supply sitting on exchanges has dropped massively over the last month. Only 12.1% of the total ETH supply sits on the exchanges which is now at a four-year low.

There’s been a 75% drop in the ETH supply on exchanges in the last 13 months. However, if all these ETH start coming to exchange, it could trigger more sell-offs. But indicators for the same are not round the corner.

The Santiment report notes: the more the supply of ETH on exchanges declines, the better of a case that can be made that we’re nearing a bottom. For that reason, we certainly have to consider this metric as a bullish indicator for Ethereum.

Courtesy: Santiment

During the FTX collapse, there were a large number of shorts by the trader. This led to ETH short liquidations on the exchanges, leading to a 17% price jump in ETH, as expected. Currently the funding rates are neutral and we can’t say in which direction the next liquidations would happen.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.