Data metric managed to predict Ethereum price surge
- Ethereum's recent price surge came as a part of a strong uptrend after a spike in one metric.
- The metric in question is Token Age Consumed metric, which shows how much ETH exchanged wallets.
- Historically, large selloffs typically announce strong price increases, so ETH might soon surge even higher.
Ethereum (ETH) recently saw a strong price increase that allowed it to gain ground against BTC. While the uptrend did begin to show signs of weakening on June 4th, this negativity was also seen in the rest of the market and is likely caused by Bitcoin decline.
However, one curious detail is that, just before Ethereum peaked, one metric spiked as well — the Token Age Consumed metric. This was a clear signal that a major amount of tokens exchanged addresses.
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Since then, the metric saw a major retraction, which might be yet another indicator of what’s to come. If the situation repeats, this could mean that it is likely to continue to extend the uptrend.
A strong performance against Bitcoin
As mentioned, Ethereum was showing signs of strength recently, and its trading pair against BTC recently finally interrupted its downtrend. Meanwhile, ETH price went up to $251, from the lows of $205. At the time of writing, however, it sits slightly lower, at $246.
The price surge was strong, and it happened right alongside the surge of BTC price, which took the coin to $10,400.
Even now, Ethereum is trying to break out against its trading pair with Bitcoin. This caused Luke Martin, a crypto trader and respected analyst, to make a prediction which says that the uptrend will continue.
Analytics agree: Ethereum might soon see a stronger rally
Meanwhile, Santiment’s analytics also pointed this trend out, with the analysts noting that the Token Age Consumed indicator went up just before Ethereum’s own peak. Analysts’ post explained the indicator’s purpose to show how many tokens exchanged wallets at a specific time. They also noted that ETH tends to see uptrends after initial selloffs.
The pattern is very bullish — historically bullish, even — and in combination with technical strength of ETH, it indicates that a major ETH rally might be on its way in the near future.