After the explosive crash of May 12 the cryptocurrency market is now reversing its downtrend. With Bitcoin surging above $40K, Ethereum too has surged above key levels. While price actions hint at a bullish trend, it is now time to monitor key circulating supply metrics.
It was difficult to judge the relative strength of the peak since Ethereum Price plunged from its ATH of $4375 last month. Although a top-to-bottom blow-off isn’t usually indicative of a long-term reversal, the market was rumored to be turning on its heels.
The Metrics – ASOL & MSOL
The following graph depicts Etheruem’s Average Spent Output Lifespan. The coins that were spent on that specific day or time frame, and lifespan refers to the last time the token was moved.
This metric is useful in identifying old coins that have been minted in the past and assessing whether or not they are moving through the network. When ancient coins are moving, the ASOL metric rises as the average rises.
Another metric is Median Spent Output Lifespan(MSOL). This measures the supply of coins that are utilized in day-to-day transactions.
Ethereum Price on the brink of bullish rally
The indications for Ethereum, as measured by ASOL and MSOL, are now on the rise. It implies that flow and movement are currently dominated by old tokens. When ASOL and MSOL have been on the rise in the past, they have added a high level of volatility, with the price moving sharply in either a bullish or bearish direction.
Taking the larger trend into account, it’s crucial to bear in mind that the cycle is still bullish. The growing ASOL value in the chart could indicate that Ethereum is still on the verge of a stronger bullish trend.
The MSOL value is still rather neutral, indicating that newer tokens are responsible for the majority of daily coin activity, but it is still on an upward trend.