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Ethereum [ETH]: Read this before going long, investor



Ethereum [ETH]: Read this before going long, investor
Source: Pexels

  • Ethereum’s price went up by over 40% since January.
  • Network growth, however, declined.

With a price increase of over 40%, Ethereum [ETH] had a successful January. Although short-term investors can consider this a success, would it be advantageous to hold the asset for the foreseeable future?

Read Ethereum’s [ETH] Price Prediction 2023-24

ETH sees a three-day straight increase

A glance at Ethereum on a daily timeline revealed that its surge began at the beginning of 2023. It was up about 1.7% as of this writing, and was trading at about $1,670. The asset would record a third straight gain in three trading periods thanks to the price increase.

Ethereum (ETH) price move

Source: Trading View

Additionally, a review of the daily timeframe of the Relative Strength Indicator revealed that ETH was in a bull trend. The RSI line was at 65 and displayed a reasonably strong bull trend. However, how favorable is this trend for traders looking to go long?

Deducing ETH’s strength through Aroon

The daily chart of Ethereum’s Aroon Indicator showed that bullish sentiment had deteriorated dramatically over the previous few weeks. However, as of the time of writing, the Aroon Up line had pumped to 100%, and the Aroon Down line was visible at 42.8%.

The rise of the Aroon Up line coincided with the latest Federal Open Market Committee (FOMC) announcement.

Ethereum (ETH) Aroon indicator

Source: Trading View

The Aroon indicator can be used to determine whether an asset is trending or trading sideways. Additionally, it detects when a trend has begun and ended. The indicator’s rise on the ETH chart suggests that the current uptrend is robust, which could be excellent news for long-term buyers.

Network growth declines

While the indicator mentioned above provided some good news for investors, this other metric suggested that they should proceed cautiously.

Ethereum (ETH) network growth

Source: Santiment

An examination of the network expansion statistic revealed a severe decline. Network growth dropped to roughly 25.9 from its previous steady state of 65. As a gauge of a cryptocurrency’s health and growth prospects, this metric assesses how widely it is being utilized.

Is your portfolio green? Check out the Ethereum Profit Calculator

An increasing network growth indicator may suggest that a cryptocurrency is growing in popularity and adoption, while a decreasing indicator may indicate the opposite. 

Given the convergence of these two important signals, this level may be a favorable chance for investors seeking to go long on Ethereum. They should exercise caution, though, because a dip in price is probable. However, a rally is imminent in the longer term.

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.