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ETH is probably waiting for a more significant sale

2 min read

After a successful London hard fort, ETH climbed to the long-awaited and significant $ 3,000 mark. However, the first concerns are beginning to materialize. Traders are again afraid of an indicator that can very accurately predict the price of ETH. It is this indicator that indicates the impending sale.

What will be the reaction of the bears?

The already mentioned indicator basically monitors the total percentage of ETH addresses that are profitable. However, it currently predicts a possible decline. A more detailed look at the matter is also predicted by an indicator from Glassnode. It reached the level of 96.4% during the current bullrun ETH.

The current investment director of Moskovski Capital, Lex Moskovski, also commented on the current situation around Ethereum. He sees great confidence in the mentioned indicator, which was always able to accurately predict local peaks for ETH.

Ethereum and percentage of profitable addresses.  Source: Glassnode
ETH and percentage of addresses in profit. Source: Glassnode

“We are back in the red zone, which is historically associated with local peaks and thus a possible sale.”

Nothing changes for Hodlers

London’s hard fork has essentially brought ETH closer to becoming a deflationary asset. Logically, the fewer ETH coins there will be, the greater the demand and value of tokens. The London upgrade will divide almost 13,000 ETH tokens to pay gas for minerals into 3 parts. One of them is the basic fee for the transactions themselves.

Upcoming Proof-of-Stake

Mechanism proof-of-stake will bring really great benefits to network users. According to recent reports, network operators want users to enter 32 ETH into a smart contract as a share of the blockchain launch. They will then receive annual income as a reward.

26% of Etherea's offer is locked in smart contracts.  Source: Glassnode
26% of Ethereum’s offer is locked in smart contracts. Source: Glassnode

Moskovski suggested that evaluating ETH could be much more attractive than securing temporary profits. ETH is currently traded up 79.82% above its local low of July 20 at $ 1,718.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
BlackRock (IBIT), the Grayscale Bitcoin Trust (GBTC), Fidelity (FBTC), Ark Invest/21Shares (ARKB), Bitwise (BITB), Franklin (EZBC), Invesco/Galaxy (BTCO), VanEck (HODL), Valkyrie (BRRR), WisdomTree (BTCW), Hashdex (DEFI)

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