ETH - Showing decent strength

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Sanfam
Apr 22, 2021

Assets covered: ETH

Metrics used: Price, Coin supply on exchanges, Daily Active Deposits, MVRV 30D


Price

ETH price vs BTC price - Sanbase

Since the market-wide dump by BTC's sell off last week, ETH's been single-handedly holding up the rest of the market even as BTC continues to show weakness over the dollar.


It also appears that ETH might have broken out of its correlation (good volume too) with BTC's price recently after an entire year of mirroring whatever BTC was doing.


This strength is generally a good sign and if it continues, it should bode well for altcoins as well for the next few weeks since ETH is the grand daddy of altcoins.


If BTC ranges instead of dumping hard (we did clear out alot of leverage positions in the last dump) , this should open up room for an altcoin rally.



Supply on Exchanges

ETH supply on exchanges - Sanbase

ETH supply on exchanges continue to fall, with a recent dip to the lowest levels seen in the past 1 year. This is overall a good sign as sell side pressure is alleviate and assumed that people are accumulating.



Daily Active Deposits (DAD)

ETH Daily Active Deposits - Sanbase

ETH's daily active deposits (refers to the number of unique depositors to exchanges) have reduce significantly since the later part of 2020.


Looks like most people are hodling instead of depositing to exchanges to dump, which is a healthy sign so far. However, as price goes higher, it is expected that there will be DAD spikes along the way as people take profit. As long as it's DAD remains lower than what we saw in 2020, it's still healthy.




MVRV 30D

ETH MVRV 30D - Sanbase

ETH's MVRV 30D (measures whether an asset is overvalued or undervalued) is sitting below the overvalued zone, indicating that there might be a little room to go before a larger dip occurred.


For reference, on average once MVRV 30D gets above 20%, we tend to observe a strong dip to reset the MVRV 30D.




Going forward

Most metrics are showing a healthy sign of accumulation and sell pressure alleviation. However, MVRV 30D continues to increase and once it hits above the 20% mark, there's risk of profit taking.


Overall ETH is showing decent strength in the cryptomarkets as BTC continues to range/dump. Should it continue, this will open up room for an altseason for the coming weeks.

ETH
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Sanfam
Apr 22, 2021

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