The Ethereum miners are in the cryptocurrency news today for accumulating more than 15,000 ETH while they were increasing their positions. During speculations around ETH 2.0, the miners showed that the price of this coin could go up in the next couple of weeks.
Currently, the ongoing stagnation phase is forcing the Bollinger banks to squeeze on the ETH 1-day chart. In this manner, squeezes are indicative of periods with low volatility and are typically succeeded by wild price moments.
Since the technical index does not present a clear path for Ether’s direction, we can see that only a daily candlestick to close below or above this critical zone will help determine what the real future holds in the ETH news.
Despite this ambiguous outlook, we can notice that the Ethereum price is stagnating despite the fact that Ethereum miners collect their tokens. According to Santiment which is one of the leading behaviour analytics platforms, miners appear to be back in accumulation mode. The miners who are in charge of validating transactions on the Ethereum network managed to increase their balance by 15,000 ETH – only in the past two weeks.
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🚀 $ETH miners appear to be back in accumulation mode. After a mild bag dump around the time $ETH began to consolidate, miners have resumed accumulating for the time being. Mining pools increased their collective balance by 15,000 $ETH in the past 2 weeks. https://t.co/acbulF3Q2c pic.twitter.com/asDJeBd1xE
— Santiment (@santimentfeed) June 17, 2020
The platform showed details and said that “miners have resumed accumulating for the time being.” Based on historical data, each time the mining pools behind Ethereum increase their balance (collectively), the price of the cryptocurrency surges.
Now, we can see that a similar price action may be forming and the growth in user adoption which Ether has experienced over time adds a lot of credence to the optimistic outlook. Indeed, the network growth is something that represents one of the most important gauges that can understand the health and well being of any cryptocurrency project.
As Brian Quinlivan who works at Santiment as a Market and Social Media Director recently said:
“Generally, [we can] see that a rising network growth leads to a rising price of any project over time, in most cases. On the flip side, declining network growth for a long enough stretch can usually indicate a future slumping price with the lack of newly created addresses constantly in-flowing the coin or token.”
Under this premise, analysts and traders expect that once the Ethereum miners collect portions of ETH like these, there must be an answer in the form of a price surge.
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