Ethereum Shows Bullish Signals, Santiment Notes

According to Santiment, a platform that analyzes cryptocurrencies, there are signs that Ethereum (ETH) may exceed a significant psychological threshold and climb even higher.

Brian Quinlivan, the director of marketing at Santiment, believes that one such indicator is Ethereum’s profit-to-loss ratio for on-chain transactions.

Although this metric is currently positive, even a small decrease could lead to increased demand and, as a result, an upward trend.

It’s possible that a price bottom is on the horizon when traders start making more transactions at a loss than at a profit.

Currently, the ratio of on-chain transaction volume in profit to loss still favors profit, but not by a significant amount.

If Ethereum’s value drops further and reaches the $1,700-$1,800 level again, panic selling may occur, leading to more buying opportunities. According to Santiment’s director of marketing,  Ethereum’s supply on exchanges is below 10%, which is a positive indicator.

It’s worth noting that the majority of Ethereum coins are being held in self-custody, which is a positive sign. Less than 7% of coins are currently on exchanges, which means the chances of significant sell-offs are lower than usual.

This is a positive indicator for the asset, especially given the somewhat lackluster performance in terms of price during the halving in September 2022.

Overall, this suggests that there is a strong sense of confidence in Ethereum as a long-term investment.

The Ethereum merge happened in September 2022, which changed it from a proof of work to a proof of stake consensus mechanism.

According to Quinlivan, given the positive indicators, Ethereum is expected to reach a good price point. Quinlivan suggests that it is better to be patient as it can be rewarding.

Quinlivan predicts that Ethereum can go beyond $2,000 by August or even before the start of the new month.

Stay tuned for more reports from the crypto space and make sure to check out the markets as well.