ETH - Quick check on momentum

Assets covered: ETH

Metrics used: Supply Distribution, Supply on Exchanges, MVRV 7D


Supply Distribution

ETH Supply Distribution - Sanbase

Looking at ETH's Supply Distribution, retail folks have started accumulating since late September and is now reducing their risk as the price rallied.

Meanwhile, cohorts with 100-10,000 and 10,000-1,000,000 ETH have been reducing since mid-Sept.

Supply on Exchanges

ETH's Supply on Exchanges - Sanbase

For the past 3 months, we have observed large spikes in Supply on Exchanges leading to strong downward price movements.

The past month have been rather quiet as ETH's price was contained within a tight range, but eventually breaking out but we are still not seeing any huge spikes in ETH's supply on exchanges, perhaps indicating that market participants are still rather bullish on it.

That said, when the spike does come, it'll worthwhile keeping an eye on it.


ETH's MVRV 7D - Sanbase

ETH's MVRV 7D which measures the short-term profit/loss of holders is showing that we are now in the Danger Zone, where historically saw ETH's price decline shortly after as a local top forms.


Amount of shorts liquidated - Coinglass

Much of the recent move was thanks to leverage shorts positioned right at the worst possible area to short. When ETH continued to move upwards, we saw $316M worth of shorts getting wiped and the next day wasn't small either (was around $200M worth).

ETH Funding rate - Sanbase

Once the shorters were cleared, we are now seeing majority of the open positions have now flipped long.


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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