Image default

Ethereum [ETH]: Read this before going long, investor

  • 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.

Source: Trading View

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.

Is your portfolio green? Check out the Ethereum Profit Calculator

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.

Source link

Related posts

Will BTC mining get more difficult? Here’s what this analyst says

Elaine Watlington

Avalanche’s latest milestone can leave AVAX investors in this pleased state of mind

Elaine Watlington

BUSD Active Address Plunges By 60% Following Regulatory Crackdown

Elaine Watlington

Silicon Valley Bank Failure Highlights Dangers of Fractional-Reserve Banking – Economics Bitcoin News

Elaine Watlington

Could Avalanche [AVAX] witness a drop this week? These metrics suggest…  

Elaine Watlington

Celebrates Bitcoin Whitepaper Turning 14

Elaine Watlington

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More