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4 Out of 6 Ethereum On-Chain and Exchange Indicators Turn Bullish

Fri, 03/04/2022 - 14:29
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Arman Shirinyan
Numerous Ethereum indicators show bullish data, but the price does not seem to react positively
4 Out of 6 Ethereum On-Chain and Exchange Indicators Turn Bullish
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Most on-chain and market indicators for Ethereum turned "bullish," including the asset's profitability, net network growth, bid-ask volume imbalance and number of large transactions on the chain.

In/Out of the money indicator

One of the most profitable on-chain indicators for Ethereum is a metric that shows the percentage of ETH holders currently remaining in profit, loss or breaking even. The second-largest cryptocurrency still remains one of the most profitable assets on the market, with over 60% of all holders trading in profit.

IntoTheBlock Data
Source: IntoTheBlock

The profitability of an asset greater than 50% but less than 75% is "healthy" since the number of holders in profit is not reaching values that would suggest oversaturation of the market. Whenever an asset's profitability reaches closer to 90%, the market faces a risk of a drawdown because of the appearance of strong selling pressure.

Bid/Ask Volume Imbalance

The balance of Sell and Buy orders on the market may also reflect the current sentiment of traders on the market. According to IntoTheBlock's data, the majority of the orders on the market are bids. Currently, the imbalance remains at 3.69% in favor of bulls.

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As for price performance, it does not seem to back up the provided data as Ethereum loses over 4% of its value in the last 24 hours. Previously, ETH has reached the first strong resistance of the 50-day moving average but has, unfortunately, failed to break through. The third failed test could indicate that the asset is still not ready for another long-term bullrun.

Besides four bullish Ethereum indicators, exchange inflows for the coin have also decreased at the same time as exchange outflows, suggesting that fear on the market still prevails over positive sentiment.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.