Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Bitcoin Soars, But Is Ethereum Next? On-Chain Data Hints at ETH Surge

Bitcoin Soars, But Is Ethereum Next? On-Chain Data Hints at ETH Surge

CoinEditionCoinEdition2024/11/21 16:00
By:Izabela Anna

Ethereum whales accumulate, signaling confidence and reducing potential sell pressure. Layer 2 solutions impact new addresses but boost Ethereum’s ecosystem demand. Daily transactions rise modestly, hinting at growing activity yet below bull market peaks.

  • Ethereum whales accumulate, signaling confidence and reducing potential sell pressure.
  • Layer 2 solutions impact new addresses but boost Ethereum’s ecosystem demand.
  • Daily transactions rise modestly, hinting at growing activity yet below bull market peaks.

Despite Bitcoin’s dominance in the current rally, Ethereum is also displaying strong potential for a significant price surge, according to on-chain data.

As per IntoTheBlock data, Ethereum has historically shown strong price performance following Bitcoin rallies, benefiting from profit rotations. However, several key on-chain metrics offer mixed signals, adding complexity to Ethereum’s outlook.

Bitcoin Soars, But Is Ethereum Next? On-Chain Data Hints at ETH Surge image 0

On-Chain Activity Shows Mixed Signals for Ethereum

Ethereum’s on-chain data highlights interesting trends. Daily transactions on the network have risen slightly, now averaging 1.22 million compared to 1.1 million three months ago. 

This increase signals growing activity, though it remains modest compared to past bull markets. Transaction volumes are steadily climbing, reflecting growing interest from institutions and large holders.

Whale activity stands out as a bullish indicator. Large holders have been accumulating ETH, reducing potential selling pressure. However, new Ethereum addresses remain below previous bull market levels, influenced by the rise of Layer 2 solutions like Base. While these solutions enhance scalability, they still rely on Ethereum as their settlement layer, ensuring continued demand.

Key Indicators Suggest Potential Upside for ETH

Several key metrics reveal Ethereum’s readiness for a potential breakout. Exchange flows have shown a reduction in inflows, indicating minimal selling pressure as investors opt for long-term storage. 

Short-term holders, typically more speculative, have seen some growth, suggesting renewed retail interest. Meanwhile, the holding time of transacted coins remains high, signaling that long-term holders are not selling, keeping supply constrained.

Ethereum’s ecosystem growth also underscores its value proposition. With the network processing over $40 billion in daily trading volume and trading at $3,309.88 , Ethereum is up 7.12% in the last 24 hours. If Bitcoin stabilizes at its current highs, Ethereum could leverage its improving fundamentals to stage a strong rally.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!