- ETH could be close to its low after transaction sizes failed to increase.
- Although the price could fall, traders are confident of a quick recovery.
On May 19, AMBCrypto noted that Ethereum [ETH] the average transaction size had fallen to $2,767. This was a decrease of 54.13% compared to the benchmark at the beginning of the month.
At the time, the average transaction size was $5,893, according to data from IntoTheBlock.
For the uninitiated, average transaction size checks in dollars the average transaction value for an asset on a given day.
Historically, spikes in this metric indicate high user activity, especially from large investors and institutions. But when it decreasesit implies an absence of institutional interaction.
Institutions out, retail in
As such, Ethereum’s recent state implies a presence of more private users. In addition, this indicator identifies potential tops and bottoms.
From the value mentioned, it was clear that ETH looked closer to the bottom than the top. At the time of writing, the price of ETH was $3,106, indicating that the price had fluctuated around the same range over the past 24 hours.
Source: IntoTheBlock
Based on the above analysis, the price of the cryptocurrency could reach a higher value in the short term. However, other metrics must be taken into account.
As a result, AMBCrypto looked at the Ethereum Exchange Net Position Change. According to data obtained from Glassnode, the Exchange Net Position Change has been in the negative region for most of the last 30 days.
ETH is getting ready for a big move
This metric tracks the 30-day change in supply in exchange portfolios. A positive value indicates that there are more coins in circulation.
On the other hand, a negative value indicates increased withdrawals from exchanges.
One thing we noticed was the statistics suddenly became positive on May 18. At the time of writing, the net position change in ETH was 81,715.
This increase could be a sign of Ethereum participants taking profits from the 6.50% increase over the past week.
If this number continues to rise, the price of ETH could fall below $3,000 before the potential rally takes place.
Source: Santiment
However, if pullbacks in the currency markets intensify again, the price could slowly rise towards $3,500. In a very bullish situation, a hike to $4,000 could be an option.
On Friday, May 17, AMBCrypto reported how options traders expected the price of ETH to reach $3,600 between May and the end of June.
At the moment of writing, Glassnode data showed that sentiment had not changed. This is due to the signals of the Put/Call Ratio (PCR).
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If the PCR rises above 0.70, it indicates bearish sentiment and there are more puts than calls.
However, a value below 0.50 implies something different. At the time of writing, Ethereum’s Put/Call ratio was 0.35, meaning most traders expect the cryptocurrency’s value to rise in the coming weeks.