Ethereum’s drawdown may be coming to an end, but will that be enough
They say you can’t always be the most talented in the room, but you can be the most competitive. Well, the Ethereum network seems to have adopted the same narrative. It seems, in 2022, one of the biggest stories in crypto-investing is going to be blockchain players that are expected to eat into Ethereum’s market share.
Even so, Ethereum is set to complete its biggest protocol change in history. Proof of Work (PoW), the environmentally unfriendly consensus mechanism will be replaced by the much more eco-friendly Proof of Stake (PoS) consensus mechanism. However, the problem of gas fees remains constant. In fact, Ethereum’s average gas price stood at 97.13 Gwei on 9 February, down from the recent high of 218.55 Gwei on 10 January.
Source: ycharts.com
The network seems to be incorporating massive changes in order to keep up with its rivals. However, the price hasn’t been deceptive of the broader market trend. After the coin fell from its $4,000 top, the bulls struggled for demand. ETH saw a major sell-off post 20 January, signalling that investors couldn’t put faith in it at the time.
However, the selling pressure couldn’t sustain itself for long as ETH climbed up to its psychological level of $3,000 within a few days. While the RSI was hinting at buyer’s interest, the volume oscillator flashed a red flag with a reading of -23.85%, at the time of writing.
Source: TradingView, ETH/USD
Notably, the most pertinent question remains – Will Ethereum break past the $4,000-mark during this rally? Well, on-chain metrics speak volumes. In the chart below, a fairly simple metric has been taken into consideration. Further, the 14d Moving Average has been applied here in order to smooth out the daily noise.
Post January 2020, the number of
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