Ethereum has reached a six-month low of $1,540, accompanied by significant changes in the movement of old coins, suggesting the possibility of capitulation, according to on-chain analytic platform Santiment. The Mean Coin Age (MCA) indicator has dropped, indicating a large movement of long-term inactive coins on the Ethereum network.
This data aligns with Santiment’s belief that a significant price drop may be imminent. Additionally, a spike in dormant circulation on September 11 suggests that coins idle for just three months are also on the move.
While some market indicators predict continued bearishness for Ethereum, Santiment suggests that relief may come for the altcoin after the projected price decline. However, traders don’t anticipate a quick recovery, as evidenced by the negative funding rate, which indicates a bearish sentiment.
To potentially aid Ethereum’s recovery, burned ethereum supply as a metric to watch. This represents the cumulative sum of ETH incinerated through the Ethereum Improvement Proposal 1559 (EIP-1559), which was implemented during the London Hard Fork. The burning mechanism aims to reduce the supply of ETH over time and improve its long-term value
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