After being in a consistent uptrend, Ethereum recently registered a downtrend along with other cryptocurrencies.
After hitting a low of $911 in mid-June, ETH gained strong upward momentum and even crossed $2,000. This has raised hopes of brighter days ahead for investors.
Source: CoinMarketCap
However, things took a U-turn on August 14 as a trend reversal began. With a negative 19% 7-day growth, the king of altcoins traded at $16,180 with a market capitalization of $197,496,029,109 at the time of writing.
Interestingly, the price drop did not affect several essential on-chain metrics of the coin.
Consider this – ETH’s number of non-zero addresses has reached an all-time high of 85,252,481. With confidence in Ethereum rising weeks ahead of the much-awaited merger, can we expect a bull rally?
Source: Glassnode
Explore the answer through metrics
As we approach ETH consolidation day, not only has the number of accounts with non-zero balances increased, but the supply of top addresses has also increased despite the coin’s price plunging.
After registering this month’s low on August 14, the numbers rose as the price of Ethereum fell.
Source: Sandhi
Obviously, HODLers expect the price to rise after the merger.
Here, it should be noted that the volume of total exchange flows has decreased recently, which can be taken as a bullish signal.
Furthermore, ETH’s social dominance has also skyrocketed to around 21%. Thus, suggesting an increased interest from the community.
Looking forward
A look at Ethereum’s 4-hour chart, at press time, suggests a bearish upper hand in the market.
After a large bullish advantage, the exponential moving average (EMA) ribbon indicates a trend reversal.
At the time of writing, the 55-day EMA was significantly higher than the 20-day EMA.
Undoubtedly, the price of ETH, at press time, was in the high volatility zone indicated by the Bollinger Bands (BB). This indicates a price crisis that can be expected soon.
Source: TradingView
However, the leading indicator MACD showed a different picture, as the blue line was on the verge of reversing the red line, indicating a bullish momentum.
RSI’s data complemented MACD’s data as it showed that Ethereum has rebounded from the oversold zone, reducing the possibility of further plunges.
Therefore, combining the metrics and market indicators, there appears to be a slight possibility of Ethereum gaining northward momentum in the coming days.
