Written by Hazel J. Greene, Senior Analyst

What is the likelihood of Ethereum’s return above the $2,000 mark? Several findings reveal promising indicators that could pave the way for a potential surge in the near future.

One important metric to consider is Ethereum’s “social dominance,” which measures the percentage of discussions about the top 100 assets on social media platforms that revolve around Ethereum. Recent data suggests a decline in social dominance due to Ethereum’s stagnant price movement, causing less buzz around the coin.

Ethereum’s social dominance has dropped, with less than 7% of discussions related to the top 100 assets centered on Ethereum currently. Considering Ethereum’s position as the second-largest cryptocurrency by market capitalization, this figure appears relatively low.

Backtesting has shown that several altcoins tend to thrive during periods when traders are focused on other assets, providing an opportunity for Ethereum to grow even amidst reduced social dominance.

Although the low social dominance creates a favorable environment for Ethereum’s potential growth, another essential metric, the profit and loss ratio on the network, paints a different picture.

It is evident that profit-taking currently prevails among Ethereum investors. Higher likelihood of price rebounds usually accompanies scenarios where investors are selling at a loss, while declines are more probable when profits are being realized. However, the current degree of profit-taking is relatively low, with the indicator hovering near the neutral zero level.

Another crucial metric to consider is the total amount of Ethereum supply held on exchanges. An increase in this figure often signifies a higher probability of bearish market sentiment, as investors deposit their coins for selling purposes. With less than 7% of coins on exchanges, significant sell-offs become less likely, suggesting a more stable market environment for Ethereum.

Ethereum has a chance to surpass the $2,000 level in August or even before the end of the current month.

Currently, Ethereum is trading around $1,900, which represents a 5% decline over the past week. While the price may have dipped recently, the underlying metrics indicate potential opportunities for a bullish resurgence.

Investors and enthusiasts will eagerly monitor Ethereum’s progress in the coming weeks, keeping a close eye on the on-chain indicators that could influence its price trajectory. Should the market conditions align favorably, Ethereum’s return above $2,000 could be imminent.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.