What you should know about Ethereum’s chances of hitting $3000 by Friday
A $100 invested in Ethereum 100 days ago would be worth $186 at the current price level of $2536. Based on data from Coinmetric’s latest report, Ethereum has averaged 610.74K daily active addresses over the last 100 days. The top altcoin’s velocity has increased by about 31% since the start of the year, growing from 9.89 to 13.00.
The bullish sentiment is evident from the metrics and the on-chain metrics. However, what does the current fast-moving price mean for Ethereum? It could mean higher liquidity and volatility. Based on the current network activity, Ethereum has had a busier bull run than 2017, more focused on network growth than speculation. ETH’s network growth is clear from the daily active deposits.
When it comes to network activity, an average of 3.96M ETH has been transferred by smart contracts per day over the last 100 days. Another metric signaling the growth is the increasing inflow of money into the altcoin. A mere 8% ETH HODLers have held it for less than a month and despite that, they are profitable at the current price level. Glassnode metrics offer more insight into the current price rally. ETH’s number of addresses profitable at the current price level has hit a new ATH.
The upcoming options expiry on Friday has motivated Ethereum HODLers and traders to push prices higher. The 20% drop in trade volume in the past 24 hours is indicative of the drop in large transactions, however, retail traders have continued buying.
This comes at a time when ETH 2.0’s deposit contract has hit 15744 ETH, a new high for the month of April. The current total is now 4,006,626 ETH. The fact that all other proof-of-stake chains are largely considered datacenter chains and ETH POS is the one that is decentralized has been key to the increasing demand, higher deposits and increased network activity.
Alongside increased network activity, the drop in average gas fees from the last week has offered an advantage to traders across exchanges. The Mean Gas Price (7-day moving average) has reached a 1-month low of 109.823 GWEI and the previous low was observed over a week ago.
This comes at a time when the dropping gas price corresponds with the increasing price. ETH’s rallying price is likely to enter price discovery and hit the $3000 level if the trade volume and large transactions increase. This is likely evident from the on-chain activity data from intotheblock. Increasing concentration by large HODLers is likely to boost the price rally.