• 12. April 2024

Ethereum’s ‚Quiet Time‘ Hiding Opportunity: Analysts

• Ethereum’s ‘quiet time’ should not be taken for weakness: Analysts suggest an opportunity lies in the ETH market from a technical perspective.
• Glassnode co-founders Jan Hapell and Yann Allemann opined that although ETH displayed signs of weakness, it had the potential to surge.
• Metrics such as the Seller Exhaustion Constant and Network Value to Transaction (NVT) signal indicate that Ethereum could be close to its lowest value in the current market cycle.

Ethereum’s ‚Quiet Time‘

Ethereum [ETH] has been experiencing a relatively subdued period in the market, with concerns arising about its price action. However, analysts are cautioning against interpreting this phase as a weakness in the altcoin. Glassnode co-founders Jan Hapell and Yann Allemann noted that Bitcoin [BTC] might shine going forward, but there is still a golden mid-term opportunity for Ethereum amid its apparent calmness.

Seller Exhaustion Constant

From Glassnode’s data, ETH’s seller exhaustion constant was down to $0.097. The seller exhaustion constant is the product of the 30-day price volatility and the coin supply in profit, which indicates low volatility and high losses – thus potentially indicating that ETH could be close to its lowest value in the current market cycle.

Network Value To Transaction Ratio

Additionally, the Network Value to Transaction (NVT) signal rose mildly after a recent fall to 82.92. As a modified version of the NVT Ratio, this metric checks if a blockchain network is overvalued or not by using a 90-day Moving Average (MA).

Price Action

ETH has been hovering around $1,835 for seven days without being able to break through $1,900 within this timeframe; however, it may still rally shortly based on these metrics suggesting an impending bottom for Ethereum’s price action.

Conclusion

Overall, analysts are optimistic about Ethereum’s future despite its current „quiet time“ as metrics indicate possible bottoms forming on short term timescales which could lead into more bullish mid-term opportunities for traders and investors alike who are looking for entry points into ETH markets.