In the fast-paced cryptocurrency world, Ethereum’s recent subdued performance has caused its spotlight to dim. While XRP and LINK are capturing headlines with their lively market activity, ETH has maintained a relatively low profile, despite being the second-largest cryptocurrency by market capitalization. However, this quiet phase may very well be the calm before the storm, as many under-the-radar metrics suggest Ethereum’s return to the significant $2,000 level and beyond.
Santiment, a platform with on-chain and social metrics for cryptocurrencies, shared a Twitter post providing insights on the performance of ETH, LINK, and XRP.
📊 #Ethereum is sitting rather quietly at $1,895 while #XRP and #Chainlink have been grabbing headlines as of late. Our latest insight takes a look at the under the radar metrics that could be very well hinting at an $ETH return above $2,000 and beyond. https://t.co/5TKfhncwA4 pic.twitter.com/cdNgTUtMED
— Santiment (@santimentfeed) July 21, 2023
Three months ago, on April 16, ETH scaled a peak of $2,132, an all-time high. Since then, its value has seen a correction, with the coin hovering below the $2,000 mark, a price point that acts as a psychological support level for many investors. Interestingly, the sentiment around ETH is tied to this level. Investors become more optimistic when Ethereum exceeds it. Conversely, skepticism creeps in when ETH struggles to breach this barrier.
Nevertheless, Ethereum’s lackluster performance isn’t unique to the crypto market. Many assets, including Ethereum, have registered moderate gains against Bitcoin after BTC’s price rally in June following the introduction of Blackrock and other ETFs, which spurred market bullishness.
Interestingly, Ethereum’s low-key market activity has caused the asset to fade in investor discussions. Its mention rates have hit 2023 low, mirroring the levels last seen in mid-May. However, far from being a red flag, past market patterns suggest that this could be a positive sign. Altcoins often perform best when other more ‘exciting’ assets distract the market. And currently, the limelight is firmly on XRP.
Investor sentiment also plays a critical role in ETH’s future performance. If Ethereum’s price dips further toward the $1,700-$1,800 range, this could trigger panic selling, potentially creating a buying opportunity for the keen investor. The short and long-term investor sentiment is also worth noting. ETH holders active in the last month have witnessed an average return of -0.35%, essentially breaking even. However, active, long-term traders over the previous 365 days have seen an average return increase of 14.9%.
With fewer than 7% of Ethereum coins held in exchanges, the chances of massive sell-offs are relatively slim. This limited liquidity is a strong signal of investor confidence in the asset, despite its somewhat underwhelming performance following the September 2022 halving. The XRP is currently priced at $0.790, while the LINK is at $8.14, up by 15.84% in the past 24 hours.
Ethereum trades just below the $1,900 mark at $1,893, following a steady rise at the beginning of the week. With a trading volume of $7.24 billion in the last 24 hours, ETH’s market cap is a whopping $227.6 billion. However, the ETH community remains largely silent, their attention diverted by other top-market cap assets such as XRP and LINK. But as history has shown, patience often yields rewards in the crypto market. Ethereum presumably would move back to the $2,000 mark in August or even sooner.
