Ethereum, the second largest cryptocurrency on the market, is just as, if not more popular, than Bitcoin right now. However, although the altcoin has appreciated a bit, in recent days some absurd expectations have also been associated.
The reason why they are absurd and what awaits ETH investors in the future will definitely make you rethink your decisions.
Ethereum: up or down?
On September 15, around 363,000 ETH left the exchanges. The total value of these ETH amounted to $ 1.2 billion. According to the analysis website Into The Block (ITB), the last time such volumes were involved, ETH surged 60% in 30 days.
The net amount of $ ETH leaving exchanges just hit a new record
More than $ 1.2 billion in $ ETH left centralized exchanges yesterday
– IntoTheBlock (@intotheblock) September 16, 2021
The truth of the matter, however, is completely different. At the moment, Ethereum’s surge of 60% will not be the case, as verified by the price action itself. However, the reason is still something else entirely.
On September 15, the offer in benefits reached 97.03% and marked a market cap. This suggested that the next course of action was for the price to go down, as it did. In fact, since yesterday, the price of crypto has fallen by almost 4.44%.
A similar observation can be made when looking at the offer in earnings and price action on September 7. On September 6, 99% of Ethereum became profitable that day and a new upper market was created. Naturally, a price drop was imminent and the following day, ETH fell 12.69%.
How did investors react?
The events of 2 days ago also led to the big wallets moving as transactions worth more than $ 100,000 increased by 2k. This resulted in approximately $ 2 billion in volume that is traded in just 2,000 transactions.
At the same time, the medium-term holders (holders of the coin between 3 and 6 months) also left the market. In just one day, the indicator registered a decrease of almost 7% in the figures.
Not only that, but the top of the market also resulted in Ethereum’s correlation with Bitcoin dropping to 0.55. This is the lowest level you have seen in almost 3 months.
So for now, expecting a 60% price increase is definitely off the table. Some consolidation is possible, but a price increase of more than 10-15% based on a single indicator is absurd when others point in the opposite direction.
This is a machine translation of our English version.