ETH - All roads eventually leads to the merge play

Assets covered: ETH

Metrics used: Price, Volume, Social dominance


BTC, ETH and the S&P - Sanbase

Crypto continues to be highly correlated to the S&P market as we recently saw better than expected CPI data lifting the S&P beyond the resistance zone, which in turn sent risky assets like crypto for another leg up.

It's a much hated move (for most) since markets bottomed out in mid-June, leaving sidelined folks in the dust.

But not all rallies are equal, BTC have been underperforming. Instead, ETH has been leading the recovery as we draw closer to the merge.

ETH/BTC price - Sanbase

With the grand daddy of altcoins leading the way, altcoins too saw a nice relief rally. Here's a list of blue chips that have been performing rather well since the bottom in mid-June.

However, price behavior saw a change mid-July, as these bluechips topped out against ETH and have been sliding since. The only exception was CHZ, which made a new high.

blue chip altcoins prices in ETH - Sanbase

Much of this behavior is likely due to funds flowing from altscoins to the ETH merge speculative play.

We can observe that from the "merge" Social dominance.

Merge social dominance - Sanbase

Consistent huge spikes in "merge" social dominance marked the top of blue chip alts against ETH in mid-July.

Fast forward to 11th August, "merge" social dominance spiked again as the market gets wind of the scheduled merge date of 15th/16th September.

ETH merge date - Twitter

It almost seems like everyone and anyone is in this very obvious speculative play.

As we draw closer, it's very likely we see yet another spike in "merge" social dominance and similar price action (alts dropping, ETH rising) as late comers pile in whatever they have to ride it, which eventually increase the chance of things leading to a blow off top.


Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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