Ethereum (ETH) has recorded a decline in trade count since its Merge, according to Santiment’s data. The blockchain analytics site noted that daily active addresses that interacted with ETH plummeted relentlessly since the ‘hype’ merge, hitting four-month lows on October 20.
That saw weak hands distributing the leading alt consistently. Moreover, Santiment suggested October 17 represented the first day Ethereum had less than 400K daily wallets on its blockchain since June 26.
Dormancy Plus Other Stories
The overall market showcases substantial ETH disinterest from investors, leading to price stagnation. Assessing the token’s MDIA (Mean Dollar Invested Age) confirmed the narrative. Santiment added that Ethereum’s stretched MDIA displayed a surging metric of dormant coins on the platform.
The previous six months saw the MDIA growing by 41%. Such prolonged stretches in a crypto’s MDIA index show a worrying stagnancy level in the token’s network. That brings a challenging atmosphere for the particular coin to record significant price growth.
Most Ethereum holders have experienced losses on their holdings since the Merge upgrade. The crypto’s MVRV (market Value-Realized Value) declined swiftly from 5.4% on September 14 to rest beneath the 0% center line. While publishing this blog, Ethereum’s MVRV ratio exhibited a negative reading of -16.13%.
Ethereum traded at $1,286.43 at this writing. The alt has lost around 21% since the merge completion – 36 days ago. The persistent drop in the token and unprofitability for holders saw sentiment exhibiting substantial bearishness. Moreover, the asset’s weighted metric stood at -0.317. That comes as the overall crypto market sustained bearishness.
What Next for Price?
Ethereum neared an oversold region during this publication. Crucial indicators remained below their neutral levels. The token’s RSI (Relative Strength Index) stood at 42.47 in this writing. Its MFI (Money Flow Index) retained its position at 35.19.
A reversal could emerge whenever these indicators touch the oversold region due to seller exhaustion. Meanwhile, the CMF (Chaikin Money Flow) stayed in neutral territory, indicating that buyers could be readying to trigger this correction. Meanwhile, time will reveal upcoming tendencies.
Stay tuned for the latest cryptocurrency news.