Ethereum [ETH] has had quite a difficult journey in July. The price of the alt fell to $1,040 and then rose to $1,640 within a three-week period.

Such a price change of more than 58% is a rare anomaly in large chains, such as Bitcoin [BTC] and Ethereum. But the last ugly start to the week has raised some eyebrows. And, you may wonder: will Ethereum be a case of “buy the rumor, sell the news?”

Well, the Ethereum network is sending mixed signals right now. This has made it difficult for traders to be certain about ETH’s price movements.

In addition, data from Santiment suggested “a lot” of capitulation is taking place. So where does Ethereum go from here? On-chain data can help us answer this question.

What does the data say?

A positive spark on Ethereum is the growing number of daily active addresses on the network. Ethereum has just surpassed 600,000 active addresses for the first time since May 13. This takes us back to the time when Ethereum was on the cusp of a fallout from the Luna explosion.

Source: Santiment

The weighted sentiment stat suggested that not many people are talking about Ethereum right now. The Merge news did spark interest that has not been able to sustain itself.

Still, there is currently a negative bias towards Ethereum on social media. This is further reflected in the trading sentiment activity, which is evident in ETH’s latest downfall to the $1,300 mark.

Source: Santiment

Even before the onset of the crypto winter, Ethereum saw the start of a potentially worrying trend. The network’s coins that have been sitting on exchanges began to see a steady rise after major retracements in 2022.

However, despite the July relief, the trend has not yet scaled a trend reversal.

Source: Santiment

In addition, the Market Value to Realized Value (MVRV) ratio is another indicator of declining trading sentiment.

The average returns for traders over the past 30 days have risen too high. In a stat where over 15% is a signal that a network’s profits are starting to overheat, ETH’s 30-day MVRV rose to a whopping 33%. So until this ratio falls back to 0%, ETH trading will remain a risky operation.

Source: Santiment

Overall, Ethereum traders have been thrown into demand after the flagship coin lost the $1,620 level.

After a poor start to the week, ETH has fallen back into negative territory. This further sheds light on the “severe” negative trading sentiment surrounding Ethereum. It also means that traders are still pessimistic about Ethereum sustaining a price hike.

As of going to press, ETH was trading at $1,381 after falling $8.62 over the past day.

This post Ethereum: These Statistics Could Give Aggressive Traders Clarity

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