5 factors show bulls control Ethereum price even after a 26% correction

On Jan. 4, Ether (ETH) price rallied to $1,160, which was followed by a 24% correction within the following four hours.

What is clear is that investors are anxiously awaiting the CME’s ETH futures launch, which is scheduled for Feb. 8. Another factor driving the current rally is that Ether miners’ balances reached a two-year low, a scenario that some analysts view as bullish.

The phenomenal growth of total value locked in decentralized finance projects has also played a part, especially considering that the metric reached $17.5 billion over the past week.

Total value locked, USD. Source: DeFi Pulse

For the time being, the flow of positive news and solid fundamentals seem to be in play for Ether, but it is still important to try and understand whether the recent crash reflects a potential local top or if it was simply a retest of $900 as a new support level.

Aside from price action and technical analysis, investors should also gauge the use metrics on the Ethereum network. An excellent place to start is analyzing transactions and transfer value.

ETH/USD price vs. transactions and transfers. Source: DigitalAssetsData

The chart above shows the indicator spiking above $4 billion in daily transactions, a 73% increase when compared with the previous month’s $2.6 billion. This noticeable increase in transaction and transfer value signals strength and also suggests that Ether price is sustainable at the current levels.