Ethereum. How could divergencies play out

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Santrends
Nov 11, 2021

Assets covered: Ethereum (ETH)

Metrics used: Trading Volume, Active Addresses, Social Volume, Network Realized Profit/Loss



Ethereum is one day away from it's ATH. How risky is 'being so high'?



Facts


  1. 1. We are seeing a strong divergence between price and trading volume. Price heading up, trading volume trying to pick up but fails and heading down:

2. Same for onchain volume (active addresses) since the end of October:

3. Same for social volume:

4. And, most important, same for Network Profit Loss:


Interpretation


A bunch of long lasting divergencies is pointing us to idea that we need to go down. These are really worrying.


We see network activity going down even though the price is pushing up.


People too relaxed to take profits even though ETH is going up (visible in NPL). There is a good chance they will be punished.


There is 50/50 chance market quite often moves up one more time after divergence. Just to confuse traders.


Looking at onchain metrics we are generally bearish.


But there could be one more push up.


And then crash.



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.

ETH
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Santrends
Nov 11, 2021

Thanks for reading!

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Assets from this insight

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Conversations (5)

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socialtrends

22 days ago

great analyses, this aged well. market indeed went down.

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Kels

22 days ago

If only I could accurately interpret these metrics then I'd be better positioned to stay ahead of the game.

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Santrends

Author
21 days ago

Could we invite you to weekly youtube streams where we interpret these metrics and more live? https://www.youtube.com/c/SantimentNetwork/videos?view=2&sort=dd&live_view=503&shelf_id=0

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BobaFettJr

21 days ago

You assume this is long term?

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socialtrends

21 days ago

As long as we don't have either of the following: - liquidations (better on DAI) - negative funding rates - bad news/concerns, shared by the majority