Metrics play an integral role in the cryptocurrency industry today. Figuring out what these details mean or how they can affect the price of an asset is essential. For Ethereum, there are several interesting metrics to look at today, all of which paint a somewhat bullish outlook.
Fewer Ethereum Deposits To Exchanges
One of the essential metrics in the cryptocurrency world is how many people send funds to exchanges and trading platforms. For Ethereum, that number is decreasing rapidly, culminating in a five-month low. An intriguing development, given the recent market turmoil affecting all significant crypto assets. Ethereum lost roughly half of its value, but seems to mount a slight recovery as of late.
As there are now 615 addresses sending Ether to exchanges every hour, things are bound to get rather interesting. It will take a while before there is a lesser supply on exchanges than before, though. As long as there is sufficient demand for Ethereum, the overall bearish pressure is likely to end. Even then, a price equilibrium remains a viable outcome for the foreseeable future.
Considering how over 1,200 addresses were sending Ethereum to exchanges a few weeks ago, overall interest in cashing out has decreased significantly. Why this decrease is happening now remains unclear, although the second-largest cryptocurrency by market cap goes through ups and downs regularly. The lower this metric goes, the better off the market will be.
Coinciding with this decrease is an ongoing increase in the ETH supply last active three months to six months ago. Recording a 23-month high for this metric is very intriguing, as things looked rather bleak not that long ago. Both of these reversals indicate there may be positive momentum ahead for Ethereum in the weeks to come.
ETH 2.0 Deposit Contract Spike
Despite the value per Ether decreasing as of late, it appears more and more people deposit funds into the ETH 2.0 deposit contract. That is good to see, as staking Ethereum can still prove to be a rather lucrative option for users who want to earn some passive income on their cryptocurrency holdings.
As things stand, the value of the ETH 2.0 deposit contract has now surpassed 5.265 million Ether. It is a minor increase over the past few weeks and makes one wonder how much higher this value can rise. No one knows when the switch to Ethereum 2,0 will happen exactly, as that upgrade is still in the development and testing phase at this time.
All things considered, Ethereum seems to be in a good place today. Despite the recent market onslaught, the currency is recovering nicely. The upcoming changes to sharding, staking, and transaction fees will benefit millions of users. There is a lot to look forward to, although no known timeline exists at this time.