- 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.
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.
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.
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.
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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.