The Ether (ETH) toll is currently ranging betwixt $440 and $470, like to its price action seen in December 2017. Back then, the scenario ended up being incredibly bullish, and the altcoin quickly rocketed toward $ane,400.

Fast frontwards to 2020, and some investors believe a similar result may occur, as a few key on-chain and technical indicators are mirroring the levels seen in the previous balderdash run.

On Dec. ten, the Ether price was $450, and it took only 34 days for Ether to reach its all-time loftier. Before this cost explosion, the altcoin traded sideways for over two weeks. If something similar were to happen, on-chain metrics and historical data propose information technology could happen over the adjacent ten days.

Ether in Dec 2017 (left) vs Nov 2020 (right). Source: TradingView

Take notice of how the contempo toll movements raised investors' hope that the next crypto bull market will mirror the one seen in belatedly-2017. Although the cost is an important metric, information technology does not provide granularity for network usage and book.

To assess the size and corporeality of daily transactions, Coinmetrics provides adjusted transactions and transfers data.

Ether daily average transactions (left) vs. ETH price. Source: Digital Assets Data

The above nautical chart shows $1.9 billion of the most contempo transfers and transactions, a 46% increase from the previous calendar month. Although Ether'south cost increase undoubtedly helped, the aforementioned effect happened in late 2017.

Daily average transactions and transfers notional. Source: CoinMetrics

The daily average notional transacted and transferred on the Ethereum network in November 2017 stood at $830 million. This all changed by the end of the calendar month, every bit the indicator broke the $2 billion mark. This aforementioned indicator has strong ties to the current scenario.

To improve judge network activity, i should besides analyze the daily number of active addresses. Although it should not be interpreted as the number of active users, it provides a reliable network usage gauge.

Ether daily active addresses (correct) and Ether price (left). Source: Digital Assets Information

November information seems to be repeating the previous month's superlative at 550,000 daily active addresses. This time around, activity appears to be at a much college level than the belatedly-2017 era.

Of course, one might need to adjust to the growing use of decentralized finance and stablecoins. Yield pools and decentralized exchanges are responsible for tens of thousands of daily transactions involving multiple addresses.

Ether daily active addresses. Source: CoinMetrics

As 1 should expect, the number of daily active addresses dorsum in November 2017 stood at 200,000, significantly below today'due south number, and managed to increment to 500,000 network addresses per day past the end of the year.

On-concatenation analytics might have been close enough to the current state, but toll action relies heavily on volume. After all, trading activity doesn't necessarily hold a direct relation to network utilise.

Ether average daily volume. Source: Messari

The current $1.iii billion in daily average volume represents a 50% increase from the previous month. This data is remarkable, equally information technology does not include decentralized exchanges.

Ether daily transparent volume. Source: Messari

Oddly plenty, the current Ether volume stands out at the same level seen in Dec. 2017. Therefore, one might conclude that this is likewise much of a coincidence to be disregarded.

The current daily active addresses, transactions/transfers notional, and traded volume are aligned with the 2017 year-end period when Ether traded near the $450 mark.

For this reason, analysts have solid reasons to believe that a $1,400 balderdash run is within the realm of possibility inside the adjacent few weeks.

Volition a renewed decentralized finance frenzy exist enough to generate an inflow similar to the i seen during the 2017 initial coin offering era? Or will information technology be institutional and larger-sized investors who sustain a powerful 300% rally?

As the saying goes, "History doesn't repeat, but it often rhymes."

The views and opinions expressed here are solely those of the autho r and exercise not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves take chances. You should carry your own research when making a decision.