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November 27, 2022
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These 3 factors will determine whether Ethereum’s recovery will be sustainable

Ethereum, like most of the crypto market, fell substantially with news involving Elon Musk and bans in China

Ethereum’s recovery is well underway, with the price staying close to the $ 2,000 level. Despite a price drop of almost 45% last week, more than 85% of ETH HODLers are profitable at the current price level. The number of large transactions fell last week and there were $ 193.39 billion in large transactions on the Ethereum network. Network sentiment remains low, but the influx of investment in Ethereum makes it likely that the recovery will begin.

Aggregated daily volume of ETH futures || Source: Skew

Factor 1

Since Ethereum was super leveraged, the longs caused Ethereum’s price to plummet. However, based on the chart above, the aggregate daily volume of ETH futures has been below $ 70 billion since May 19, 2021. As the volume is consistently less than the peak reached on May 19, the recovery is likely to be in progress, as well as metrics point in the chain.

Ethereum's recovery is under way based on these factors

Grayscale Ethereum Trust ETHE || Source: Skew

Factor 2

The daily volume of the Grayscale Ethereum Trust fell, as did the daily volume of future aggregates. The last time the volume of the Grayscale Ethereum Trust reached this level, the price of Ethereum has risen to the $ 3,000 level, it is likely that if the volume remains below this level, the high that begins will be sustainable.

Ethereum's recovery is under way based on these factors

Source: Skew

Factor 3

Among other metrics, Ethereum’s number of open contracts fell significantly, based on the chart above. After reaching a peak in the last week of April, open interest contracts fell. As the social volume increases consistently, ETH’s futures metrics signal a recovery in price declines.

With a circulating supply of 115 million ETH and a 31% drop in overall market capitalization, ETH’s recovery is likely. Among HODLers, 88% are profitable at the current price level, and the current price action has made it likely that more traders will profit by buying / accumulating when the price was below the $ 2500 level.

In the long run, ETH’s ROI has been high, increasing consistently. Accumulation through dives is signaled by an increase in the concentration of large HODLers. Although the growth is not yet clear, this is an important metric to be observed. The increase in the concentration of large HODLers may also signal an increase in the influx of investments in Ethereum.

Source: AMBCrypto

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