The Ethereum team took another step on the roadmap of the project with new updates this week. In this article, you can find the latest developments and on-chain analysis from the ETH network.
How is the Ethereum price?
ETH price has pulled for a very long time since it touched $4,000. The peak came on November 10, 2021, with the ATH market cap reaching $489.17 billion. At this point, the entire crypto market, not just Ethereum, was in a bull run.
However, the tide quickly changed and 2022 brought a tough showdown for Ethereum. The resulting price correction, combined with the broader market pullback, plunged ETH’s value to about a third of its peak 22 months ago. This sharp decline has undoubtedly tested the patience of long-term investors. It also created doubts about the future prospects of the project.
Development activities and updates
One of the most important moments in Ethereum’s recent history was the much-anticipated precursor to the merger aimed at improving scalability and energy efficiency. In terms of achieving its technological goals, Ethereum has been quite successful in this effort. Despite these developments, Ethereum’s struggle to exit and regain lost momentum has caused investors to slowly turn their attention elsewhere and overshadow the coin’s larger value counterparts.
As Ethereum overcomes the current challenges, the question on everyone’s mind is: What awaits this blockchain giant? According to Santiment, the project remains viable, as evidenced by the continued reliance of SAND on Ethereum. However, the data-driven analysis offered by Santiment delves deeper into the current state of Ethereum’s metrics.
What’s next?
In terms of utility, Ethereum has witnessed a significant decline in on-chain transaction volume and trading activity since its peak in early November last year. Such metrics are not definitive indicators for any coin. Still, it reflects a sense of waning interest among investors grappling with uncertainty.
As Cryptokoin.com has included in its analysis, a psychological support zone has formed around the $1,500 level. This shows that investors are following this threshold closely. If Ethereum drops to this level, it will experience a renewed surge in investor activity. This means a significant increase in transaction volume.
Whale activities
Analyzing the key players in the market, especially whales, reveals a remarkable trend. Over the past four months, whales holding 10-10,000 ETH have drastically reduced their reserves. This is not a precise predictor of market movements. However, it does show that the whales were cashing in when the Ethereum price reached its 2023 high of $2,120.
However, the continued decline in supply held by key shareholders does not necessarily rule out the possibility of price increases. The relationship between profit-taking activities and general market trends is complex. This becomes a complex factor to consider when predicting the trajectory of Ethereum.
Finally, the Ethereum development activity serves as a beacon of hope for those who have invested in its success. The project’s history of continuous improvement and innovation spans over eight years, as can be clearly seen by its growing presence on platforms like GitHub. Such a consistent commitment to development reflects the project’s commitment to progress and bodes well for its long-term sustainability.
Santiment analysts expect recovery for Ethereum
Ethereum continues to hold its place as a core blockchain platform. Its use is increasing as more projects adopt its capabilities. This underscores its importance in the wider crypto ecosystem. However, for those looking to time the market and look for optimal entry points, Santiment’s metrics suggest that more viable opportunities may exist beyond the current market scenario.
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