Analysis of on-chain data on Ethereum


Yesterday, Ethereum (ETH) crossed the resistance of 1,870 dollars. On-chain data analysis identifies critical factors that could propel the price of ETH. THE milestone of 2000 dollars could it give way in the days to come? Analysis in this article.

Upward trend in prices and on-chain bullish indicators

Ethereum bulls extended their rally to a new 60 day high. ETH reached $1,875 on Thursday, before a slight correction. ETH in fact sought, twice, support at 1780 dollars before starting to rise again.

Source: CoinMarketCap

Ethereum is attracting higher volume than normal. Although ETH’s gains currently lag behind Bitcoin (BTC), recent on-chain data shows that the top 2 crypto is attracting a unusually high number of transactions.

Note that the total fees generated by daily transactions on the Ethereum network have been steadily increasing since August. According to data compiled by IntoTheBlock, total fees climbed toward a 60-day peak at 3,350 ETH on November 1.

Source: IntoTheBlock

The Total Fees metric summarizes the total amount of gas that network participants pay for processing transactions in a given day. Therefore, a persistent increase in fees collected goes hand in hand with the increase in the number of transactions.

Typically, prolonged and increased network usage is considered a bullish signal. In this scenario, the increase in the price of ETH is more due to growth organic than market speculation.

A marked increase in burn rates to validate the upward trend

The upgrade Shappela, in April 2023, completed the transition of consensus from Proof of Work (PoW) to Proof of Stake (PoS) on the Ethereum network. This had a direct implication on gas costs paid by users.

Today, a significant portion of ETH fees collected from users are now burned daily. This is a deflationary mechanism which exerts a permanent upward pressure on Ether prices.

Therefore, the burn rate has also increased as ETH fees and the number of transactions have increased over the past two months.

7,960 ETH worth approximately $15 million were destroyed between October 28 and November 1 only. On Wednesday, we even reached a daily ATH that had held since August, with 2,610 ETH burned, or around $5 million.

If the burn rate continues to increase, the price ofEthereum could gain ground against Bitcoin. Indeed, this increase in the burn rate has a deflationary impact leading to the increase in scarcity of the token as well as the increase in its price over the long term.

On-chain analyzes predict an increase in the price of Ethereum, on the way to $2,000

The overall data ofliquidity inflows and outflows on Ethereum, which represent historical buying trends of Ethereum holders, also support this scenario. They indeed show that the $1,880 zone constitutes the most significant resistance. This resistance is also the last stronghold before the 2,000 dollars.

9.12 million addresses hold 39.13 million ETH purchased at the minimum price of $1,880. In the event that these holders decide to liquidate their ETH, a correction would take place. On the other hand, a decisive breakthrough above this area could see the price of ETH reach $2,000.

However, Ethereum could fall below the $1,600 mark if the most pessimistic investors wanted to invalidate the current uptrend. But as observed earlier, the bulls should most likely support the level of 1,650 dollars. 7.6 million addresses currently hold 13.27 million ETH purchased at the minimum price of $1,640. If these holders HODL (keep their ETH), they could naturally prevent a major correction of the price of Ethereum.

While waiting for the very probable recovery of ETH, other interesting altcoins hitting the market. One of them could record strong performance at the time of its launch.

Bitcoin Minetrix, a project that is starting to interest older people

Excitement around Bitcoin Minetrix continues to grow among traders, investors and large companies. This token could well ride on the success of Ethereum in the weeks and months to come. It would even be possible that the price of the token $BTCMTX is following a long-term trajectory just as impressive as that of Bitcoin (BTC) itself. But why ?

At the heart of Bitcoin Minetrix lies a revolutionary concept: staking for mining (Stake-to-Mine). When you acquire tokens $BTCMTXyou get ERC20 mining credits.

These credits are your gateway to earning rewards by mining Bitcoin without the need for technical skills or expensive infrastructure. The more $BTCMTX tokens you stake, the more you accumulate mining creditsand more your potential rewards become important.

And if the entire cryptoshpère is interested in this promising projectit’s because it pre-sale is a hit. In just a few weeks, the pre-sale made it possible to raise the record sum of $3.220 million.

How to buy $BTCMTX ?

The pre-sale will take place according to 10 successive stages. At each phase, the price of the token will increase. If you want to secure Bitcoin Minetrix at the competitive rate of $0.0114, don’t wait any longer, because the price of BTCMTX will increase by 5.0% to $0.0115 in just 3 days. You can now buy BTCMTX on the official website of the project. The minimum purchase is $10.

To buy BTCMTX, simply: connect your crypto wallet. You can get BTCMTX with ETH, USDT and even BNB. But note that a purchase via BNB will not allow you to stake your BTCMTX and will put you through alongside substantial passive income. Don’t miss this unique opportunity!

Sources: Beincrypto, IntoTheBlock, CoinMarketCap, Bitcoin Minetrix

On the same subject :

This article does not constitute investment advice in any way. The information provided here should not be used as a basis for making financial decisions. Cryptocurrency investments involve risks and may result in significant losses. You should only invest what you can afford to lose and carry out your own research before making any investment decisions.





Source link -95