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Ethereum (ETH) Could Crash to This Level Before Next Bull Run, Says Analyst

Ethereum has bounced back after falling near the $1,500 support level, but the broader market trend for the leading crypto asset remains bearish.

In fact, ETH could still see further downside as an important on-chain metric is gearing up to revisit historically significant territory.

Bottom Signal

Crypto analyst Ali Martinez řekl Ethereum’s Delta Price metric, created by Alphractal, has successfully identified the last two major ETH market bottoms. The indicator is currently positioned near $700 and measures the relationship between investor cost basis and miner production costs.

According to Martinez, if previous market patterns repeat, Ethereum risks falling toward the $700 range again before beginning its next upward trend.

Despite rising negative sentiment around the asset’s recent price performance, Ethereum’s network growth has continued to accelerate. Data shared by Santiment revealed that the blockchain now has nearly 195 million non-empty wallets, around 230% more than Bitcoin’s 59 million wallets.

According to the analytics platform, the gap between the two networks has steadily expanded across multiple market cycles even as the crowd sentiment fell into extreme fear territory. Ethereum is now only about 5 million wallets away from reaching the 200 million milestone.

Santiment attributed much of the network’s growth to Ethereum’s strong presence in DeFi, staking, and broader on-chain activity, where users actively engage with applications instead of only holding tokens.

ETH OI On Binance

Meanwhile, derivatives market activity around Ethereum has also started showing signs of recovery. While Ethereum recently entered deeply oversold territory, some traders have viewed this as an opportunity and started increasing their exposure to the asset through futures markets. CryptoQuant observed that Binance recently recorded a new all-time high in Ethereum open interest measured in ETH terms, with nearly 3.7 million ETH currently tied to futures contracts on the exchange.

As a result, Binance now accounts for more than 44% of total Ethereum open interest. Meanwhile, Binance’s weekly average Taker Buy/Sell Ratio climbed from 0.95 to 1.0, which indicates that traders are gradually moving back toward buying activity after months of stronger selling pressure in Ethereum futures markets.

Příspěvek Ethereum (ETH) Could Crash to This Level Before Next Bull Run, Says Analyst se objevil jako první na CryptoPotato.


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