Ethereum price soars above $3K into ‘red zone’
An on-chain indicator, notorious for accurately predicting Ether tops, returns amid the ongoing price rally.
Ethereum’s native asset Ether (ETH) crossed above $3,000 in an extended upside rally on Aug. 7, hitting a three-month high. Nevertheless, the cryptocurrency’s incredible move upside also boosted its possibilities of facing a bearish backlash.
An on-chain indicator that tracks the total percent of Ethereum addresses in profits predicted the said downside outlook. In detail, the so-called “Ethereum: Percent of Addresses in Profits” indicator by Glassnode reached 96.4% amid the ETH/USD price rally.
Lex Moskovski, chief investment officer at Moskovski Capital, highlighted the metric’s capability of predicting Ethereum top. In hindsight, whenever the Glassnode indicator crossed the 90%-threshold, it resulted in profit-taking among Ether investors.
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