Due to the long-term outlook, a large portion of cryptocurrency investors are investing in Ethereum. However, even historic measures like PoS are not enough to revive prices
Due to the long-term outlook, a large portion of cryptocurrency investors are investing in Ethereum. However, even historic measures like PoS are not enough to revive prices. In the challenging environment of a bear market, ETH no longer seems to attract new investors. Several data points confirm this point. So, what do people expect from Ethereum?
ETH Price
From October 6th to October 12th, prices fell by 7% to a 7-month low of $1520. Lack of interest in the recently launched ETH futures has led even the most optimistic investors to become pessimistic. This king of counterfeit coins accounted for only 0.2% of the trading volume during the launch of Bitcoin ETFs, which was almost ignored.
When we delve into the details, it actually indicates an increase in people's interest in cryptocurrencies. Google trend data shows that Ethereum search volume has reached its lowest point in the past three years. It is the lowest level since last month's bear market. So, despite the influx of investors during the bull market, is it normal for search volume to be so low?
The decrease in search volume to the 2020 level indicates that active investors may have dropped to the 2020 level or even lower. What else can explain the drop in cumulative trading volume to a low of $14 billion?
Ethereum (ETH) analysis
The average 7-day transaction cost of Ethereum has dropped to its lowest level in the past 12 months, reaching $1.8. Is this good news? If you think network users will pay lower fees, then you are wrong. ETH compensates for these low costs through its loss of value.
Because the combustion cost mechanism before the PoS mechanism was to reduce supply by burning a portion of these transaction costs. ETH nodes continue to earn pledge rewards. However, the number of ETHs destroyed has decreased as the cost has decreased to $1.8. Therefore, we can say that Ethereum is currently inflationary. For example, negative inflation can reverse within 30 days. If low costs continue, supply will significantly increase and prices will decrease.
On October 12th, the Ethereum futures premium hit its lowest point in five months. In the past two months, the total locked in value (TVL) of Ethereum has decreased from 13.3 million ETHs to 12.5 million ETHs, indicating a decrease in demand. The decline in activity of most ecosystem DApps (including Uniswap and OpenSea, the largest NFT market) is a concern.
So, what is the conclusion? If on chain data, Google trend data, and other indicators can effectively identify the bottom, then the bottom of ETH may have already arrived. We may be approaching a larger decline at the bottom.
Like and follow a friend you like, welcome to provide your valuable suggestions in the comments section
If you have any questions, you can leave a message in the comments section or private message. Thank you for your likes and support
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
