Ethereum [ETH] continues to divide investors with the latest developments on the network. The 4th of July celebrations activated the surging bulls in the crypto market. Bitcoin [BTC] also bounced above $20,000, setting a precedent for the crypto industry. But where does ETH go from here?
ETH for the win
The festive greetings have been kind to Ethereum that witnessed an awful ending to Q2. But recent on-chain data has been dividing investors with the ambiguity surrounding it. While trader optimism remains high, ETH is still stacking up on exchanges. ETH is trading at 70% discount in its YTD performance.
Nonetheless, ETH has been operating at a 9.5% price increase since July 4. It is currently trading at $1,155 after a whopping 83% increase in volume on the network. According to a Santiment Tweeter, the price movement shows both sides of the coin right now. As the price rise shows a recovery in ETH, there is growing concern about currency inflows. On closer inspection, ETH is accumulating on exchanges and running at a high near 2022. This trend continued high during the last bear cycle.
Another update in the futures market on Bitfinex has shown a worrying trend. As per a Glassnode tweet, ETH perpetual contracts volume has dipped to a one-month low on Bitfinex of $9,887,684. Although this is just one platform, it can still be considered as a sign of a weak community.
Additionally, the MVRV ratio (30d) has seen a slight uptick recently with the price reversal. But it continues to be undervalued as it sits at -8.75%. There is room to grow here for Ethereum.
Merge works gaining traction
The recent Consensus Call provided latest insights into the Ethereum Foundation and how the Merge works are going. Sepolia merge activation is expected to be completed soon as per the meeting. The brief also claimed that Ethereum has its eighth mainnet shadow fork to test the Merge coming up. Developer Marius Van Der Wijden updated on the smooth transition of the Gray Glacier hard fork.
