The second-largest cryptocurrency by market cap, Ethereum, passed over $3,000 in an extensive rally on August 7, hitting a 3-month high.
According to crypto experts, the current price surge of Ether (ETH) has been fueled by EIP-1559 (also known as the London hard fork) this week. Also, the positive possibilities it opens for Ethereum in the future as the network is moving towards the long-expected Ethereum 2.0 upgrade.
However, an on-chain indicator that tracks the total percent of Ethereum addresses in profits predicted the said downside outlook. But Glassnode indicator reached 96.4% amid the ETH/USD price rally.
Regarding this, Lex Moskovski, chief investment officer at Moskovski Capital, highlighted the metric's ability to predict Ethereum surge. In other words, he said that whenever the Glassnode indicator passed the 90%-threshold, it resulted in profit-taking among Ether investors.
Lex Moskovski said,
"We are back to the red zone, historically associated with local tops."
Nevertheless, he continued that the price might stay near its current highs — above $3,000 for a while.
The optimism around the London hard fork arises from the growing deficiency that should make this crypto more valuable in the long run, particularly against a booming demand.
So, if there is no dumping, will Ethereum reach $4K soon?