History often rhymes and the present is often a version of the past. Accordingly, it would not be wrong to say that such cyclicality also applies to the cryptocurrency market. In essence, past precedents are things that cannot be broken.

At this point, the largest altcoin in the market is at a point of indecision. Ergo, it makes sense to look back and draw the similarities to see if some answers can be found.

At the moment, the ETH / BTC spot trading volume is at the mid-April level, and notably, Bitcoin continued to hit the ATH at USD 64,000 and at the same time the Ethereum price began to rise slightly at that time. The cryptocurrency continued to cross the $ 4,000 mark in the weeks that followed. Is ETH now back to its old level, is it heading for a new all-time high soon?

Source: Skey

In order for the ETH price to rise, the transaction volume must increase. As can be seen from the graph above, the spot trading volume of the ETH / BTC pair declined towards the end of the year. Although there was an increase at the end of June, the same level cannot be maintained.

In fact, volumes were similarly low in mid-April, but the Ethereum rally was initiated by Bitcoin. However, given the current state of Bitcoin, Ethereum’s sluggishness is likely to continue for a few more days. At the time of writing, ETH is trading around the $ 1,850 price range after falling 11% over the past week.

To make matters worse, other on-chain indicators aren’t looking good at the time of writing. The daily trading chart has not seen a spike in the past few days. Based on data from Etherscan, the total number of transactions on the ETH network is nearly 1.2 million at the time of writing. However, in the previous rally it exceeded 1.7 million.

It has to be said that an increase in this figure is a prerequisite for the ETH Prize to gain momentum.

in addition, POLE The short-term nature of Ethereum doesn’t look good either. Negative returns on the Ethereum chart (-21% in the last month and -19% in the last 3 months) offer investors no incentive to divert their money into these altcoin.

Source: CryptoQuant

In the midst of the thorns that stand in the way of ETH, however, it can be determined that the amount of ETH in exchange wallets has steadily decreased. This implies that the ETH tokens have been moved to private wallets and cold storage. This development, coupled with the growing “staking” hype, will likely pull alternatives out of the quagmire. Still, other indicators will have to change in the coming days.

Well, even if Ethereum isn’t in its worst form, hopes of a trend reversal in the next few days are unrealizable.

SN_Nour

According to Ambcrypto

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