Ethereum on-chain metrics trifecta flashes this signal for investors
Ethereum’s price has been trying to get out of the $3,000 range for quite some time but has failed in the face of investors booking profits. ETH has spent plenty of time stuck in this range. And, now it might seem unpleasant to traders in the short term. However, on-chain metrics reveal that things are building up for the better and especially for the long run.
Perhaps the most bullish on-chain metric for Ethereum from a long-term perspective is the diminishing ETH present on exchanges. This number has been on a downtrend since its peak on 30 July at 29.69 million.
Since then the supply has dropped nearly 50% as it currently hovers at 14.91%, This massive decline indicates that investors are not just bullish on Ethereum price performance but are using other DeFi products like lending, staking, borrowing to allow their ETH holdings to earn more money.
This development is the most bullish outlook that a cryptocurrency can ever see and it is happening with ETH. Adding this to the incoming update ‘The Merge,’ which will supposedly convert the Ethereum blockchain from a Proof-of-Work to a Proof-of-Stake, the decline in ETH on exchanges and the big picture makes sense.
Source: Santiment
Furthering this bullish outlook is the net decline in the number of deposits being made to these centralized entities. This number hit a peak of 455.28k active deposits on 17 June and has been dropping ever since.
Even this indicator depicts the bullishness that investors exude, adding credence to the long-term bullish performance of ETH.
Source: Santiment
Supporting this insane run-up for the Ethereum price is the supply distribution chart, which shows that institutions and whales have been busy buying the dips. This on-chain index tracks the changes
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