There are always some Ethereum metrics that paint a rather interesting picture. While the price isn’t budging much, there are other facets to keep an eye on. None of them look overly promising for the ETH price, however.

A Spike In Ethereum Transaction Volume

On the surface, an increase in Ethereum transaction volume is a good sign. Particularly if that metric hits a three-year high out of the blue. It indicates the network is busier than it has been over the past few years, even with the rising gas fees over the past few months. No one wants to pay over $100 for a transaction, yet that is the reality most Ethereum users face today.

As the mean transaction volume has now surpassed $23,185, an interesting situation is created. On the one hand, it shows people are spending more Ether despite the price dropping very hard in recent days. For most users, this may be a sign to sell Ether in favor of other assets, although it remains to be seen if that is the case. A rise in transaction volume can mean many different things.

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BlocDesk Ethereum Transaction Volume
Source: Glassnode

Given the current price momentum, it is normal to think more people are selling Ethereum these days. However, there are many use cases for this currency and anything remains possible. Some of the volume will undoubtedly pertain to selling and exchange activity. Until more details become available, speculation will run wild regarding this metric.

One evident thing is the decrease in Ethereum addresses holding 32 Ether or more. This metric has been on the decline for a while now and shows no sign of recovering. More people may be depositing 32 ETH to the Ethereum deposit contract, as that still remains a lucrative option. That can also contribute to the rise in overall transaction volume. 

Exchange Withdrawals Are Stalling

One segment not contributing to the Ethereum transaction volume is the exchange withdrawal metric. There are fewer ETH withdrawals from exchanges for some time now. It is not abnormal to see a fresh five-month low being recorded in this segment, although it is a bit problematic when looking at the bigger picture.

BlocDesk ETH Withdrawals
Source: Glassnode

Fewer exchange withdrawals and fewer exchanges holding 32 ETH or more is a potentially dangerous combination. More liquidity and fewer funds being moved off exchanges can create more price pressure over the coming days and weeks. As the price is already under a lot of pressure, the values may keep dropping lower for some time to come.

There is no way to determine what all of these metrics mean separate from one another for the time being. Even when putting the puzzle pieces together, there is no real conclusion to be drawn. Cryptocurrency markets will always do their thing and may not follow logic. That is unlikely to change in the years to come.