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IntoTheBlock shows Ethereum’s volatility has dipped to record lows. Meanwhile, that has coincided with the altcoin’s on-chain data signaling bullishness for the second-largest digital asset by value.

Analysts expect near-term price upticks from Ethereum, as low volatility, which generally lasts less than one month, often trigger price movements in either direction. In that context, Ether enthusiasts can expect more price fluctuations soon.

Ethereum fees and volatility at record lows

Ethereum fees have dropped significantly this week by 21.2%, reaching a two-month low. This decline coincides with a period of stagnating volatility.#ETH pic.twitter.com/jgk23bbv1v

— IntoTheBlock (@intotheblock) August 11, 2023

Further, the on-chain analytics platform IntoTheBlock revealed substantial dips in Ethereum fees as the alt’s volatility hit historic lows. This week has seen gas charges plummeting 21.2% to $34.8 million, hitting 2-month lows. That comes amid stagnating volatility.

Volatility gauges the token’s price movements over time. IntoTheBlock suggests that diminished volatility catalyzes increased Ethereum adoption. However, the press time levels are significantly low.

Ethereum’s more bullish metrics

Amidst record-low volatility, Ethereum has flashed bullish on-chain signals. The Market Value to Realized Value (MVRV) indicator, obtained by dividing the crypto’s market cap by its realized cap, determines whether the asset is undervalued or overvalued.

(Click on image to enlarge)

Ether MVRV ration on Santiment

Higher MVRV means more individuals interested in selling amidst increased potential returns. Santiment’s data shows Ethereum’s 11 August MVRV is undervalued, suggesting impending upticks for the cryptocurrency.

Also, Ethereum supply on exchanges has declined since May, whereas dip-pocketed players, or whales, have increased their holdings in that timeframe. Low assets deposited into trading platforms can signal amplified buying momentum. Furthermore, accumulation by whales highlights potential price upticks.

Ethereum price outlook

Ethereum recorded minor price actions within the past day, losing 0.45% to explore the $1,848 mark. The altcoin has steadied beyond $1.8K following the latest United States PPI and CPI report.

The Consumer Price Index increased by 3.2% in July, less than expected. However, the data has little impact on cryptocurrency prices, with Bitcoin and Ethereum remaining relatively unchanged.

Meanwhile, Ether has hovered within a range over the past several days as bulls fight the 24hr 50 Moving Average at $1,881. Overcoming this hurdle will open the gate to $1,930 before the psychological zone of $2K.

Ethereum buyers should amplify their activity to avoid price declines toward the vital support zone at the 24hr 200 Moving Average at $1,793.

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