The investors of Ethereum are not complaining about a price rally apart from the time when the chart shows the risk of a steep downside. After proper analysis of the current price chart of Ethereum, it led people to conclude that the channel that was ascending since 15th March is too aggressive.
Future Of Ethereum Shows Some Excitement
Hence, for the pro-traders, it is natural to be scared about losing the support of $3,340 which can result in the immediate retest of the $3,100 level or a correction down of 12% which means to $3,000. However, the majority of this depends on the positioning of the traders along with the on-chain metrics of the Ethereum network.
The TVL of the Ethereum network ranged at ETH 32.8 million on 23rd January and since then it has decreased by 20% till date. The work of TVL is to measure the coin numbers that are deposited on the smart contracts, which include gaming, social networks, DeFi, NFT marketplaces, high risk, and collectibles.
In addition to this, the average transaction fee of the Ethereum network went down to $8 on 16th March and then again increased to $15 by now. Thus, it must be evaluated whether it portrays less use of DApps or users are getting benefit from layer-2 scaling solutions.
To get the knowledge of the positions of the professional traders, they should evaluate the data of the future market of Ether. The contracts that occur quarterly are whales and there was a clear preference of market makers for instruments as they want to surpass the fluctuating rate of funding of the perpetual futures.
The active addresses number on the network is an indicator of the use of the network. However, it can be misguided by increasing the rate of adoption of layer-2 solutions which only works as a point of starting.
