Key Takeaways:
- Ethereum price soared beyond $1700 marking the yearly high at $1783 during the last trading day
- The buying pressure has piled up which may keep up the bullish momentum, enabling a significant price rise in the coming days
- The rise in the activity of the investors over the platform may keep up the momentum elevated towards the north
Read More: Ethereum Shanghai Upgrade is Live
Ethereum’s price has been constantly surging ever since the crypto markets have notably risen in the past few days. The fallout from the US banks had pulled the crypto space above the bearish captivity, which was further fueled by the fresh CPI rates that went lower than the previous. Hence, the price, which has been printing green candles for four consecutive days, is believed to maintain a healthy upswing in the coming days.
Besides adding another feather to the cap, the Shapella upgrade went live on the Goerli testnet on March 15, 2023. The development is believed to be in the final stages, and the mainnet launch is expected to take place in the coming month. This is a significant step in the ETH 2.0 journey, as the stakers will now be able to withdraw their staked ETH with the Shanghai Upgrade.
The lead developer Tim Beiko announced the successful fork of the Goerli testnet that took place at 10:26 UTC with epoch 162,304.
Deposits are being processed (https://t.co/CxYtPcGMCp), but it seems like several validators haven’t upgraded. Looking into it 👀
One challenge with testnet validators is that given the ETH is worthless, there’s less incentive to run a validator/monitor it.
— timbeiko.eth (@TimBeiko) March 14, 2023
The developer said that the withdrawals are being processed but highlighted that some of the validators have not upgraded yet as they receive a very minimal incentive to run the validator/monitor on it.
He says, “Another possible cause is the large # of withdrawal credential changes processed right at the fork. Given this is the first time people can submit those changes, there are many more that need to be processed, which can lead to missed blocks/attestations on low-resource nodes.”
Read On: USDC Stablecoin Depeg
Ethereum Token Technical Overview
Source: Tradingview
- The Ethereum price has been trading within predetermined resistance and support levels ever since it surged during the first few days of 2023
- The ETH price after rebounding from major support at $1381, surged high but again failed to surpass the crucial resistance at $1737.18
- The price has faced multiple rejections at this level and hence it is mandatory for the price to rise beyond these levels to rise above the bearish captivity
- Woefully, the RSI has displayed a bearish divergence due to which the price may face a minor pullback
- However, the MACD is still bullish, hence after a short-term bearish consolidation, a strong rebound may raise the ETH price.
Ethereum Token On-Chain Analysis
Ethereum MVRV Ratio
Source: Coinmetrics
The MVRV ratio is nothing but the difference between the current market capitalization of the token to its realized market cap. The result which is called the fair value of the token is considered to determine whether the current price of the token is undervalued or overvalued. A lower or negative MVRV ratio suggests the price may be prone to a rebound as it may attract huge liquidity.
However, the MVRV ratio rebounded during the past weekend as the crypto markets thrived with magnificent numbers. The ratio surged high indicating the price to have gained huge value which may also compel some of the traders to liquidate their holding expecting some profits.
Ethereum Active Address Count
Source: Coinmetrics
The active address count is considered to measure the demand and popularity of the token within the markets. It is nothing but the number of addresses that interacted with the platform to perform a trade. Each address is counted only once regardless of whether it is a buy address, a sell, or a swap address.
The address count has rebounded after maintaining a notable descending trend. The address count had dropped to 412.06K and further raised beyond 584.94K which is the highest level since the beginning of February 2023. The surging number of active addresses indicates the rising demand for the token which may further impact the price.
Ethereum NVT Ratio (30D Avg)
Source: Coinmetrics
NVT or the Network to Value Transactions is defined as the ratio of the market capitalization divided by the transacted volume. It measures whether the network is overvalued or not. A higher NVT indicates that the transaction volume of the token is plunging at a higher rate than the market capitalization, indicating the prevailing bearish sentiments.
However, the 30-day average of the NVT ratio has dropped which indicates the volume is surging faster than the market cap, while the investor sentiments remain bullish or optimistic. Hence, a fine upswing may be expected in the coming days.
Concluding Thought!
The Ethereum price is heading toward the next phase of ETH 2.0 which is the Shanghai upgrade. A major impact is expected on the price as millions of ETH tokens are believed to flood into the market. However, the MVRV & NVT ratio is extremely bullish while the active address count has also surged as more investors are actively trading, contributing to the volatility. Therefore, even if the price experiences a pullback, it may be just a short-lived one.
