Ethereum [ETH] is continuing to divide investors with the latest developments on the network. Celebrations of 4 July have activated the bulls in full swing in the crypto market. Bitcoin [BTC] has also bounced back above $20k- setting a reviving 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 is running at a 9.5% price jump since 4 July. It is currently trading at $1,155 after a whopping 83% increase in volume on the network. As per a Santiment tweet, the price movement is showing both sides of the coin right now. While the rising prices show ETH recovery, there is a growing worry in exchange inflows. Upon closer inspection, ETH is stacking up on exchanges and is running at a near- 2022 high. This trend has continued to run high in the latest bearish 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.
Source: Glassnode
Furthermore, the MVRV ratio (30d) has recently saw an uptick with the price reversal. But it continues to be undervalued while standing 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.
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