Ethereum: Decoding if ETH would lose sight of $1,600 and its dominance over this…
As October nears its end, Ethereum [ETH] has been able to sustain its price dominance over Bitcoin [BTC] with signs to even command better. An overview of the last thirty days showed that ETH increased 21.52% while trading at $1,628 at press time. According to CoinMarketCap, BTC’s rise within the same period was a minimal 6.55%.
Here’s AMBCrypto’s Price Prediction for Ethereum for 2022-2023
According to Santiment, BTC was less likely to win the “battle” anytime soon. The on-chain analytic platform reported that the ETH had gained new addresses much better than that of the king coin. However, the increase had not impacted much on the network growth which decreased to 65,600.
Normally, an increase in active addresses should lead to a rise in the network growth. In turn, this should impact the price barring any other external factors.
Time to do more or else…
The on-chain analytic platform noted that ETH might need more than the current active addresses momentum to maintain the price rise. If not, the number one altcoin might lose its grip on the $1,600 region, and possibly squander the dominance it held for months. So, is there a chance that other parts of the Ethereum chain are making up for the minimal address increase?
According to Glassnode, it seemed that retail investors formed a large part of the new addresses gained. This was because the addresses with 1,000 to 10,000 ETH had decreased. At press time, addresses with 10,000 ETH were 1,160— a reduction from 1,165 on 28 October.
In comparison with the addresses with 0.1 ETH and 1 ETH, the deep-pocket investors were accumulating really low. As of this writing, the retail unique addresses count had massively increased. The implications of this trend was that ETH had potential to surpass the $1,600 zone considering that addresses continue to spike. Moreover, the coin might need a better impact from institutional investors to sustain the current momentum.
ETH might require more action
While ETH might have done well with its smart contracts supply, maintaining its dominance might require more than investor activity. For context, the network responsiveness might need to play a major role. However, the ETH participation rate had not been able to match up the validator impact on 26 October. At press time, Glassnode data showed that the participation rate was 99.09%. At this rate, slots missed by network validators were minimal. Still, it had the potential to be better.
Interestingly, the current ETH price stood more profitable for investors. As revealed by Glassnode, the ETH supply in profit was 56.78 million. With the performance of these metrics, it was highly likely that ETH would see the BTC dominance till year end.