The movement of the ETH token seems to be like a rollercoaster that cannot decide if it wishes to go uphill or downhill. At press time, ETH was trading at a price of $2,829 which was 3.5% down in the last 24 hours. And, ETH noted a 2.8% decline in the past seven days as per data from CoinGecko.
However, according to data from Glassnode, the Exchange Netflow volume, at the time of publication, was around 6,264.77 ETH. Thus, hinting at a bullish bias.
Interestingly, data released by Bankless via its latest report further backed up this bullish thesis. According to it, the Ethereum revenue increased from $1.6 billion to $2.4 billion, which is an increase of 46% in Q1 2022.
The report further states that ETH’s stake increased by 111% from 5.2 million to 10.9 million. In fact, DeFi TVL also increased by 82%, from $49.1 billion to $89.5 billion. Undeniably, Layer-2 TVL also grew by 964%, from $686.9 million to $7.3 billion.
The bullish report is in line with what many proponents have been asserting for Ethereum. Consider the case of market analyst, Marcus Sotiriou who in an interview with Insider stated,
“I expect Ethereum’s switch to proof-of-stake to have a positive impact on the price in the long term. Indeed, it should significantly reduce the cost of transactions on the Ethereum network, which is currently the main disadvantage of Ethereum.
However, Colin Harper, the Luxor Research Director, and Ethan Vera, the COO of Luxor, had contrasting views. In conversation with Wu Blockchain, the Luxor executives stated that in their opinion the ETH PoW model seems less viable to them given the latest updates from its developers.
Colin Harper went on to state,
“We are of the opinion that POW Ethereum is not going away anytime soon. But if Ethereum becomes POS, other altcoins will absorb Ethereum’s hashrate.
But, what’s the latest?
At the time of writing, ETH was struggling to bring in demand. On zooming out a little, the token seems to be following a downtrend post 5 April high at $3525.
Additionally, the Relative Strength Index (RSI) stood at 42.67 at the time of this analysis. For most of its sessions after April 5, RSI rested below the 50 mark. In fact, the Awesome Oscillator (AO) further underpinned the token’s bearish move at press time.
