During the current market downturn, the world’s second-largest cryptocurrency, Ethereum (ETH), has experienced a significant correction. While the price of Ethereum remains around $2,000(R31 317K), on-chain data suggests a likely price increase in the near term.
According to Santiment, an on-chain data provider, the Ethereum gas fee has decreased to a ten-month low of $2.54(R40). It adds:
”Ethereum’s average fees are currently at the lowest position, costing traders around $2.54(R40) per transaction. This is the lowest cost for $ETH since July. Historically (but not automatically, $ETH prices rise after average transactions fall below $5(R78.29)”.
Ether (ETH) is currently in the accumulation phase
On-chain data suggest that Ethereum has recently experienced significant accumulation. The whale group of addresses holding between 10,000 and 100,000 ETH in their wallets has increased their balance from 28.3 million ETH in March to 29.0 million ETH as of today.
It means the whales have spent roughly $1.4 billion(R22B) for over 700,000 ETH. Currently, these whale addresses own approximately one-fourth of the total ETH supply. However, along with the whales, Ethereum retail investors have also taken part in equal measure. During this time, the number of Ethereum whale addresses holding 1 to 10 ETH has increased significantly.
Over the previous month and a half, the number of ETH whale addresses holding 1 to 10 ETH has increased from 1.14 million to 1.19 million. According to industry experts, the crypto market may experience a relief rally following the recent price drop. If Ethereum can maintain a daily closing price of above $2,000(R31 317K), the ETH price might reach $2,300(R36K) in the near future.
However, if the relief rally continues to be supported by broader market gains, the ETH price might reach $3,000(R47K) or close to it.