Just a day after crashing 7% along with other major cryptocurrencies, Ethereum is back again in the news. There is growing uncertainty over its short-term prediction with different data sets suggesting more confusion for investors.
Glassnode posted two metrics on its Twitter feed suggesting oncoming turbulence for Ethereum. The delay of ‘Merge’ has led to the dominance of negative market sentiment in the Ethereum community. However, the Ethereum Foundation has since launched a roadmap for the same to ensure some community support.
Data briefing
Ethereum reached a new landmark recently which shouldn’t come off as good news for the community. It crossed a two-year high of ‘Number of addresses in loss’ earlier on 7 May. At press time, the total number of addresses in loss stood at approximately 24.5 million which is the highest since May-June 2020.
Source: Glassnode
Another worrying metric is the ‘Miner revenue’ which just reached a 9-month low of $1,476,333.1. The previous 9-month low of $1,487,318.95 was observed on 13 March.
With their profit margins squeezed, miners are forced to sell their tokens under pressure. This further increases the selling pressure thereby creating an overall bearish sentiment in the market.
Source: Glassnode
Furthermore, the ‘Number of Non-Zero addresses’ reached an all-time high on 7 May at 80.1 million addresses. It is particularly an important metric since its reading is hinting at an anticipated future bullish momentum.
Source: Glassnode
Hear it from the expert
As per Business Today, Vikram Subburaj, CEO of Giottus Crypto Exchange, warned investors of temporary market volatility. He said,
“Crypto markets are going to be volatile until investors, who are currently risk-off, turn to risk-on mode. In the upcoming months, the surge in dollar index DXY has to reverse before there are indications of a revival in stocks and crypto. Bitcoin and other crypto-assets can potentially shed up to 20 per cent or more from current levels before investor funds start flowing into the asset again.”
He further ended on a positive note in terms of long-term investment. This is a vote of confidence for the downtrodden investors after a rough couple of weeks, as he said,
“Patience will be key to allowing existing portfolios to consolidate and grow. We anticipate a strong Q4 2022 for crypto assets.”