Ethereum[1] is trading above $600, just as it did over the past weekend. What’s interesting however is that despite its dropping correlation with Bitcoin, the price has sustained at the current level. The latest developments in Ethereum[2] charts indicate that the narrative that led to the BTC price rally may be brewing for Ethereum[3] as well. Over the past two months, the increase in Ethereum transactions is nearly the same as the first week of November and alongside that, miner revenue and network transaction fees have increased.
Ethereum transactions Hourly chart || Source: Glassnode[4]
The pattern emerging in this chart interestingly supports a further increase in the number of Ethereum transactions in the following week. Since an increase in transactions in the Ethereum network is accompanied by a drop in the active supply of the altcoin, the price rally may be sustained. Right before the launch of ETH 2.0, there is a drop in Ethereum’s active supply. The 1y-2y (1d Moving Average) has reached an 11-month low of 23,028,693.493 ETH. The previous 11-month low of 23,134,927.958 ETH was observed on 03 January 2020, nearly 11 months back.
The pattern emerging in this chart interestingly supports a further increase in the number of Ethereum transactions in the following week. Since an increase in transactions in the Ethereum network is accompanied by a drop in the active supply of the altcoin, the price rally may be sustained. Right before the launch of ETH 2.0, there is a drop in Ethereum’s active supply. The 1y-2y (1d Moving Average) has reached an 11-month low of 23,028,693.493 ETH. The previous 11-month low of 23,134,927.958 ETH was observed on 03 January 2020, nearly 11 months back.
Ethereum Active Supply || Source: Glassnode[5]
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