ETH - Excitement is building up?
Assets covered: $ETH
Metrics used: Price, Supply on Exchanges, Social dominance, MVRV 30D
ETH's price and volume is showing some divergence where Price goes up but trading volume has significantly decreased, suggesting that a weakening momentum.
Supply on Exchanges
ETH's supply on exchanges saw a decent drop as price rocketed, suggesting that investors' confidence have increased and are buying to hold.
ETH's social dominance continues to grow as price moves upwards but it still remains lower than the previous peak, which may suggest there can be some room for it to go before things cool down.
Excitement is certainly building up.
ETH's MVRV 30D which measures the short-term profit/loss of holders, has now entered the Danger Zone, which historically saw ETH's price top out shortly after it enters this zone.
Looks like new money is flowing in via USDT, which is a healthy sign. Money that flows in usually goes into the market for speculation and the correlation in the latest price action seems to support it well.
For continued healthy price growth, we'll need to observe a consistent flow of new liquidity entering the space.
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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