Ethereum (ETH) is the second largest cryptocurrency by market capitalisation and its value has seen a lot of fluctuation recently. The latest price pump in ETH saw it break its all-time high of $2,000, however a correction served a reality check shortly after. On-chain data indicates that long-term investors are standing firm and bullish ETH price predictions are yet to be invalidated.
Mean Coin Age, which evaluates the average days that all ETH coins in circulation have stayed in their current wallet addresses, is an indicator of long-term commitment and gives a positive signal for ETH Price prediction. After ETH price dropped 7%, Mean Coin Age has increased from 33.95 to 35.65 between Friday, May 5, and May 8, suggesting that most long-term investors across the network are HODLing firm.
The Exchange On-chain Market Depth measures the number of buy/sell limit orders investors have placed across prominent crypto exchanges and, as it stands, an excess demand of 32,900 coins suggests that the price of ETH could rise as buyers compete for the scarce supply across exchanges.
The Global In/Out of the Money metric shows the distribution of all current ETH holders based on their purchase price and if the bullish price prediction is validated, ETH could rally toward $2,448 before facing more significant resistance. At this level, the 8.5 million addresses which bought 29 million ETH at an average price of $2,448 could form another sell-wall. Failure to hold the minimum support level, which is currently estimated to be around $1,790 and consists of a buy-wall from the 2.9 million addresses that bought 3.6 million coins at the minimum price of $1,793, could see ETH prices drop further toward $1,468.
The on-chain data suggest that the next ETH bull rally could test the $2,500 psychological level and with long-term holders standing firm, it is likely that the bullish Ethereum price prediction is put back on track. The outcome of the predicted rally is highly dependent on the actions of Ethereum's long-term investors and will largely be decided in the days to come.
Melanie Lee
- 2023-05-08
Ethereum Price Pump as Long-Term Investors Stand Firm
Ethereum (ETH) investors are showing their long-term commitments with the latest price pump in ETH which saw it break its all-time high of $2,000, as per on-chain data. This suggests that bullish Ethereum price predictions could be back on track.
