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Ethereum's Price Returns Toward $1,800 as This Metric Indicates Next Direction of Trend

Wed, 06/08/2022 - 15:53
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Tomiwabold Olajide
Ethereum's price returns toward $1,800, this metric indicates next direction of trend
Ethereum's Price Returns Toward $1,800 as This Metric Indicates Next Direction of Trend
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According to crypto analyst Ali Martinez, Ethereum network activity remains a good metric that could be utilized to understand the direction of the ETH trend. Bear trends are indicated by lower lows, whereas uptrends are indicated by higher highs.

The number of active ETH addresses continues to drop, according to the Glassnode chart attached to the tweet, as Ethereum's downtrend continues.

Another indicator of the ETH trend is Ethereum transactional volume, which is at multi-year lows.

According to IntoTheBlock, Ethereum transactional volume has been on the decline since May 2021, with a low of 1.22 million ETH on June 5. With fewer people utilizing ETH to make transactions and buy NFTs, Ethereum's price subsequently declined.

According to recent updates, the Ethereum PoS Merge transition on Ropsten Testnet is planned to go live soon given the current hash rate.

Tim Beiko, an Ethereum core engineer, previously stated that the network's longest-running PoW testnet was transitioning to proof of stake, with the Merge scheduled for June 8.

CNBC's "Mad Money" host Jim Cramer is a "believer" in cryptocurrencies, but only as a speculative investment that accounts for less than 5% of a portfolio.

Cramer tells CNBC, "I can't tell you not to own crypto; I own Ethereum."

Cramer stated that he originally purchased ETH to bid on a non-fungible token (NFT) at a charity event. He says, "They wouldn't let me do dollars. I had to buy it in Ethereum, so I did some research, and it has several characteristics that I like."

Crypto's long-term worth, according to Cramer, "is its timeliness" as a decentralized, peer-to-peer currency that might gain widespread use over time. The Mad Money host, however, bets mostly on Bitcoin and Ethereum.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.