Ethereum is increasing-on-chain analysis

The endless struggle of Ethereum against the psychologically important $ 3,000 limit continues. The Defi king previously broken the resistance, which means that it has now increased by 16 % compared to the week.

Ethereum 7-day returns, data about coinmarketcap

order volume

The 3,000 dollar area has recently been a tug of war, and today it reads no other. Data below via in the block shows the stormy volume on both sides of $ 3,000 Bids and Asks burst. It is difficult to determine where the ETH will go from here; Like most financial investments, it can depend on external geopolitical developments that have been abundant recently.

Order volume around the $ 3,000 limit, data about Intotheblock

volume

The volume does not indicate any indication in both directions, since the withdrawals from the stock exchanges continue to follow a slow but steady decline. This indicates that despite the volatility that Russia has caused on the entire market this month, the Hodler stays on the spot. When we look at the 30-day movement, we now see 3 % less transactions than in the last month-not exactly a number that will shock anyone, but an important indicator that long-term owners have remained determined.

drain transactions of the past 6 months, data about Intotheblock

Bitcoin correlation

ETH has clearly exceeded Bitcoin last week, with 8 % the largest crypto in the world only added half of what ETH has achieved in the past 7 days. If you look at the correlations, the ETH has fallen slowly last month, but nothing too remarkable - and the correlation to Daddy Bitcoin remains extremely high with 0.88

While ETH enthusiasts have long forecast decoupling, this day has not yet come. With a market capitalization of ETH of $ 360 billion, while Bitcoin remains clear at $ 807 billion, the talks about "Flippening" have also been silent. However, since the highly expected ETH 2.0 upgrades are getting closer-I suspect that this summer could be the fateful day-expect the conversations to be resumed both about decoupling and over the turn. It will be very interesting to keep an eye on the correlation between the two largest cryptos as soon as the ETH passes to the proof-of-stake.

Data about intotheblock

macro

With on-chain metrics that look good but unspectacular, it looks like we have to look for the catalyst behind this increase in the ETH somewhere else. I could sit here and mine data; I could try to conclude that it is due to this or that metric, but the reality is that on-chain metrics are incredibly useful if they are used in conjunction with a holistic view of the market-but should not be viewed in isolation; still the only input source for your own model or your own forecast.

In reality, the financial markets, while ETH rose suddenly, have a boom week behind them. We mentioned Bitcoin above, but the stocks were also lively. The S&P 500 has increased by 8 % because the market seems to have priced in a more optimistic assessment of Russian developments. ETH used this momentum to turn up.

The following graphic also shows visually how synchronous Bitcoin, Ethereum and stocks were in the past week.

7-day returns from S&P 500 (blue), Bitcoin (orange) and Ethereum (black), data from Yahoo Finance

FAZIT

A strong week for Ethereum, since it not only jumped synchronously with the rest of the markets, but also significantly exceeded most cryptos and other investment classes. In view of the endless delays, ETH 2.0 undoubtedly caused a lot of frustration in view of the endless delays, but since it is getting closer, it will be interesting whether the above-mentioned on-chain metrics are shifted and whether we see different patterns in the price movement of ETH. Maybe - only maybe - this sky -high correlation with Bitcoin even falls a little.