Battle is going on right now

We will try to get an insight into the future based on a combination of TA and simple on-chain analyses.

First, let's check two price charts for BTC and ETH with few simple lines drawn.


As we can see, the structure is very similar. The constantly getting more and more tight "wedge" on a declining price. What it could mean, we can speculate below, here it is important to mention - BTC and ETH represent the crypto in general. Once you see identical structure (or pattern) for both of them - it is important. Important due to the fact that price is just a reflection of some underlying market dynamic. Once "the star aligns" (meaning the majority of a participants start showing the same behaviour), the important price action will follow shortly.

This "price even" could be reversal or acceleration of a current trend.

Now, let's check simple yet insightful metric - "daily active addresses" for both of the networks.

BTC, daily active addresses
ETH, daily active addresses

First, it's important to know that in BTC we have weekly cycles, that is when the network activity drops over the weekend (hallo to old style financial markets), so keep it in mind.

Now, what do we see through the lens of "behaviour analyses"?
Quite a few things, actually.

See, for instance, how the "base" (the lowest - on the weekend) network activity keeps growing for BTC. That gives a strong feeling of "something is brewing".
Then also look at that massive spike in ETH network activity. That could be understood as "massive spike of the hope". And hope is a dangerous feeling (we are talking about the price consequences only). Those who bought at the "spike of the hope" now feeling very nervous (to say the least).

Now let's look at the ETH network activity for the last week only:

ETH DAA, the last week only

You see that massive spike? Looks familiar now, right?

Here comes the speculative part. (Not an investment advice, yada yada yada).

As the price has tried to break higher (through the resistance we've shown on the first two charts) on a lower network activity - in 95% of the cases that would guarantee the price decline.

If that happens, don't freak out.
We might see the final capitulation, which is a healthy sign.
if that happens or not - subject to the analyses based on the data when it happens.

Thanks for reading!

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