The price of Ethereum has surged recently but is beginning to show signs of conflicting momentum, based on the latest blockchain insights shared by market intelligence platform Santiment. While the second-largest cryptocurrency gained over 13% in October, its trading volumes have declined even as prices rise.
- Ethereum is currently trading around $1,800, up substantially.
- However, daily trading volumes have dropped significantly over the past week, despite the rally.
This divergence between rising prices and falling volumes often precedes market tops as buyer demand weakens. It suggests the powerful Ethereum price rally may be losing steam.
Ethereum supply on exchanges drop
Other blockchain indicators paint a mixed picture of Ethereum’s outlook. The supply of ETH held on exchanges has dropped during the recent price surge. This suggests confidence is high as investors transfer coins to private wallets to hold long-term.
However, social media buzz around Ethereum, while growing, remains below previous peaks. This could indicate room for further enthusiasm to build.
Finally, Ethereum’s MVRV ratio, which measures short-term profit and loss for holders, has entered the historical “danger zone.” Tops often form shortly after the MVRV ratio enters this level.
On the positive side, fresh capital continues entering the market through stablecoins like USDT, likely for speculation. This inflow of new money typically supports price gains.
In summary, Ethereum shows a mix of conflicting on-chain trends, typical around volatile turning points. While prices have seen robust gains, beware of waning momentum under the surface. Key indicators of a market top may be developing.