These on-chain metrics suggest that ETH Could Rally Going Ahead

The world’s second-largest cryptocurrency Ethereum (ETH) has been under a bit of selling pressure moving closer to $1,200 levels. However, the ETH price is showing a bit of bounce back recently and has surged to $1375 levels.

Some on-chain indicators hint at a positive development in terms of network activity for Ethereum. Ason-chain data provider Santiment reports:

Ethereum’s amount of new addresses being created is hovering around 70k per day again, the highest seen since early August. And after quite a bit of uncertainty around the mid-September #merge, the supply of $ETH on exchanges has dropped back to 14.6%.

Post the major sell-off in June, Ethereum (ETH) gave a solid run-up all the way to $2,000 ahead of the Merge upgrade. The ETH price rallied nearly 80% from the June lows before retracing back once again.

Last month, Ethereum (ETH) successfully conducted its Merge upgrade, and the ETH price showed a ‘sell-the-news’ kind of move. As the U.S. equity markets came under strong selling pressure, ETH along with the broader crypto market faced a similar fate.

Since mid-September, ETH has been constantly under selling pressure. Since the Merge event, the ETH price has corrected more than 25%.

ETH Crowd Discussion on the Low

ETH is currently trading just above $1,375 and has reached here for the first time in the last eight trading sessions. However, the discussion rates around ETH have dropped to a seven-month low. On-chain data provider Santiment notes that the low crowd interest in ETH leads to a higher chance of a bounce. It adds:

Ethereum has spiked back above the $1,375 mark, returning to levels last seen on September 27th. It appears the trading crowd has turned their interest to other coins, leaving $ETH prices to rise with much less resistance and expectation than usual.

It will be interesting to see whether ETH can continue with this momentum going ahead.