The cryptocurrency sector is currently stuck in a bearish trading pattern, but some indicators suggest a price increase in the near future for some of its assets, especially Ethereum (ETH), could be on the cards.
One of these indicators is the supply of Ethereum in circulation, which has dropped by nearly 4,000 ETH in two days alone, according to a tweet and chart shared by the market analytics platform Delphi Digital on October 10.
A lower supply of a digital asset in circulation means that fewer of it is available to the general public. This usually leads to an increase in its value, and it is what could await Ethereum in the near future.
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Other indicators of price increase
A drop in circulating supply isn’t the only sign of a potential bullish run for Ethereum. As it happens, Ethereum’s open interest on the largest crypto exchange Binance has risen to all time highs, indicating that fresh capital is being poured into the crypto market, financial analytics platform Kaiko said in a blog post on October 10.
Indeed, both Bitcoin and Ethereum open interest on Binance have surged, with Ethereum’s rising by 10% since the end of September 2022 – to 1.3 million ETH, and Bitcoin’s as much as 20% over the same period.
Furthermore, the number of new Ethereum addresses by the seven-day moving average (MA) has just reached a 10-month high of 5,044.161, according to a tweet and chart by Glassnode Alerts; the alerts account by the on-chain metrics platform Glassnode, published on October 11.
This suggests an increased interest and indicates that the decentralized finance (DeFi) asset could be getting back on its feet after substantial losses due to increased selling pressure post-Merge.
Meanwhile, Ethereum added 135,780 new addresses on October 8, marking the highest daily network growth in 2022 – specifically since December 7, 2021, as Finbold earlier reported.
Ethereum price analysis
At press time, the price of Ethereum stood at $1,280, which represents a decrease by 2.27% on the day, as well as 5.07% compared to seven days before.
As things stand, the market capitalization of the second-largest digital asset by this indicator is currently $157.63 billion, according to CoinMarketCap data retrieved by Finbold on October 11.
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