Despite signaling a recovery on Wednesday after the Fed raised interest rates, Ethereum, along with Bitcoin and other cryptocurrencies, fell on Thursday in the classic “buy rumors sell news” fashion, continuing a losing streak that has overshadowed the entire crypto market since late March.
At the time of writing, ETH is trading at $ 2,556, down 47% from its all-time high. Bitcoin fell to $ 34,644, down 49% from ATH even as traders try to find the next milestone. However, despite the fact that the price neglects key levels of support, experts have mapped out various metrics on the chain that could prove key to price change.
Bitcoin, Ethereum transactions have skyrocketed
Santiment reported on Saturday that Ethereum recorded the largest number of transactions as prices fell towards the end of the week. This is, as they said, the first time in more than three years.
“There were about 3.4 times more transactions on the Ethereum network on Friday, while coins were at a loss compared to profits. This was the biggest day, in terms of the capitulation ratio of $ ETH trading from November 18, 2018 or 3.5 years ago. ” A May 7 tweet was read by an on-chain analytics firm.
On Friday, the company also tweeted: “The Bitcoin network yesterday had 1.17 million unique active addresses for conducting transactions [Thursday]-which was the largest amount of utilities since December 2, 2021.
What does that mean
As other factors such as ETH transactions skyrocket due to NFT coins, the increase in transactions on both networks, especially during the decline, is mainly related to entities that take more coins.
While coins or stable coins sent to stock exchanges have always been associated with sales, in most cases during falls, such as that at hand, it can mean that subjects want to refill their bags.
More factors in the game
For the past three or more months, BTC and ETH whales have been in the shopping, hiding their coffers at every significant drop, ZyCrypto reported. Interestingly, the number of small whales created has increased significantly since June last year, and the number of HODLers has also kept heading north.
The recent liquidations, other than those on Thursday, also preceded strong races. Liquidations are potentially perceived as a “shadow belly” for buyers who want to take advantage of the opportunity to acquire crypto assets at a discounted price.
Technically, if Ethereum loses its current “less support”, the price goes up to $ 2,400 support. If it falls further, it could go to its lowest level in January of $ 2,200. Bitcoin, on the other hand, could fall to $ 31,000 before reaching its June low of $ 28,000, a highly desirable zone of inflection.