Will Ethereum Break Out? 2 Key Factors

• Increased whale activity and a 79% surge in trading volume hint at potential bullish momentum for Ethereum.
• On-chain metrics remain mixed, although the bulls hold a narrow lead in the Long/Short Ratio.

Ethereum (ETH) ICO participants who initially acquired 150,000 ETH (now worth approximately $389.7 million) have made notable moves. Recently, one of them deposited 3,510 ETH (valued at $9.12 million) into Kraken after a period of over two years of inactivity.

This substantial transaction indicates growing confidence in Ethereum’s potential. As Ethereum trades at $2,656.39, up by 3.02% at the time of writing, the market is keen to see if this whale activity will ignite a bullish trend.

Ethereum’s Trading Volume Surge: A Sign of Bullish Sentiment?

Ethereum has witnessed a significant trading volume increase, rising by 79.30% to $28.21 billion within the last 24 hours.

Such a surge often signifies rising trader interest, potentially resulting in greater price volatility. If buying pressure sustains, this could drive market prices higher. Conversely, a rapid volume decrease without continued buying might indicate market hesitation, possibly leading to a price decline.

Source: Coinglass

On-Chain Metrics: What Do They Reveal About Ethereum?

An analysis of on-chain metrics reveals mixed signals for Ethereum’s performance.

Ethereum’s Net Network Growth sits neutrally at 0.19%, indicating no significant surge in new users. However, the In the Money metric, showing that 11.21% of investors are currently in profit, signals bullish sentiment.

This could reduce selling pressure and bolster price stability. Metrics like Concentration and Large Transactions remain neutral, showing no major changes in whale accumulation. While the significant whale deposit into Kraken suggests heightened market activity, it hasn’t yet caused a massive shift in on-chain dynamics.

Source: IntoTheBlock

Bulls Hold a Slight Edge

Examining the Long/Short Ratio, we find that bulls have a slight advantage. As of September 23, 52.28% of traders held long positions, compared to 47.72% who were shorting. This mild majority indicates a market inclination toward further Ethereum price increases. If this trend continues, Ethereum may maintain its upward trajectory.

Source: Coinglass

Read Ethereum’s [ETH] Price Prediction 2024-25

Ethereum’s recent whale activity and the significant rise in trading volume point to its bullish potential. However, mixed on-chain metrics signal a cautious market attitude.

While the Long/Short Ratio shows a slight edge for bulls, the broad market dynamics will ultimately determine Ethereum’s trajectory.

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