3 Key Indicators to Watch That Can Affect Ethereum Price

that much cryptocurrency market The second-largest cryptocurrency token by market capitalization has recently suffered from increased volatility. Ethereum (ETH), is not exempt. This makes it more difficult to determine Ethereum’s future trajectory. However, certain indicators indicate which direction the ETH price could head when this volatility subsides.

Ethereum investors are optimistic

data Coinglass shows you the most Ethereum Investors and traders remain optimistic about cryptocurrency tokens despite recent fluctuating prices. Notably, most of these traders have continued to open long positions in Ethereum, meaning they are betting that it will experience significant upside in the long term.

Bullish sentiments about Ethereum are highlighted by a trader who lost $4.5 million while longing for ETH. opened Another long position on the second largest cryptocurrency token. this crypto whale It even borrowed 17.3 million USDT from Compound to increase its position on Ethereum.

These investors’ optimism about Ethereum is even more commendable considering that the bulls have been hit hardest by ETH’s high volatility. data According to Coinglass, more than $16 million in long positions were liquidated in the last 24 hours, while short positions were liquidated in the amount of $10 million during this period.

meantime, data On the market information platform Into the Block Shows Ethereum. Market to Realized Value (MVRV) The ratio has fallen, indicating that many Ethereum holders are not yet making profits. This could be bullish for ETH price. This is because these holders are likely to be holding in anticipation of further price increases, thus providing support against potential price declines.

Making the Case for Bears

While activity in the derivatives market and Ethereum’s MVRV ratio suggest a bullish outlook for the cryptocurrency token, Ethereum’s network growth This suggests that ETH may still experience further price declines. data According to Santiment’s research, the rate at which new users are entering the Ethereum ecosystem has slowed recently.

This is decreasing network growth This is also evident in a recent Bitcoinist report. famous Ethereum fees fall to their lowest level since January. Ethereum Fees It is known to spike when network activity increases. So lower fees means fewer new users. Currently trading You may be on the network or may not even hold any ETH tokens at all.

But the silver lining is data Santiment’s data also shows an increase in speed. This indicates that existing users on the network are actively trading and injecting more liquidity into the Ethereum ecosystem. This factor could also contribute to a potential price surge for ETH tokens.

At the time of this writing, Ethereum is trading around $3,200, which has risen over the past 24 hours. data From CoinMarketCap.

ETH bears pull price below $3,200 | Source: ETHUSD on Tradingview.com

Featured image of token information, Tradingview.com chart

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