Ethereum appears to be on the right trajectory after a month of redemption. ETH started the month priced a little above $1,050, but is about to end it at around $1,700. On the back of a wider market upturn and the Merge’s announcement, Ethereum has surged on the charts.
In fact, the Merge announcement, due on 19 September, is on track to leave ‘bear’ scars behind.
And off we go
A recent CryptoQuant update by CoinSignal365was quick to notice the trend reversal on Ethereum. It found that ETH deposits on exchanges are seeing a decline in July after they peaked towards the end of June. This seems to be representing a major trend reversal, one which indicates that selling pressure has been decreasing.
Ethereum’s outstanding Open Interest number also took a major blow in late June, in tandem with its price. It has rebounded since, again in tandem with the price movement, and recently breached a new resistance line too.
This indicates that market participation has grown in July. This puts Ethereum in a strong position as it approaches a testing period.
Source: CryptoQuant
Network activity has remained high on Ethereum as it hit a new milestone on 26 July. According to Santiment, an incredible surge broke its ATH activity by a wide margin. 1.06 million ETH addresses made transactions that day, thereby recording a 48% increase from its previous record.
However, new data suggests some underlying worries for the Ethereum community. The average Realized Price of ETH 2.0 deposits is $2,389. This is a whopping 44% higher than the broader market’s realized price at $1,649. With over 13M ETH staked, this puts the total unrealized loss held by ETH in the 2.0 deposit contract at $14.96 billion.
Source: Glassnode/ CoinMarketCap
What now for ETH?
Ethereum has recovered wonderfully well from its second-worst performing month ever in June. Last month, ETH fell by 45.4% to end the month at around $1,000. It has recovered and in some style too! The top altcoin was trading just below $1,700 at press time, despite a slight dip of late.
Ergo, the crypto may be set to further attract investors, especially with Merge anticipation growing steadily across the market.
