Ethereum: Where We Are After the Dump

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Santrends
Nov 17, 2021

Assets covered: Ethereum (ETH)

Metrics used: Active Addresses, Average Fees, Social Volume, Social Sentiment, MVRV



It has been a first significant correction for ETH since it's new ATH: almost –15% from $4,878 in 7 days. And where are we now in terms of Ethereum's onchain and social data?



1. Active Addresses


There was a clearest divergence spotted earlier, right before the dump - https://insights.santiment.net/read/ethereum.-how-could-divergencies-play-out-6786

And now we are at...

... At almost 650K daily active addresses (at the moment of writing this) which is very decent for ETH. Compared to ATH activity (800K) earlier this year. We could say that Ethereum addresses are in a decline but still holding relatively strong.



2. Fees


Fees are ridiculous. Still freaking ridiculous. And during the crash fees also got very high:

Perhaps reflecting irrational moves to sell the dump. Similar as we've seen for ETH before as you can see on the chart. Dumps come along with fees spike.



3. Social Volume and Sentiment


Woa, what a big spike! Quite a ridiculous volume:

Are people mad at Ethereum for dumping? May be. Because sentiment has dropped like a rock, but recovered very quickly:

Now we're still positive. Very positive. "Buy the dip" calls dominate. So we'd say there's still room to drop in the Ethereum narrative cycle.



4. MVRV


Short term 30d MVRV looks quite good, at around -5% at the moment of writing this:

It means that short term investors are slightly at a loss in general. The same time long term 365d MVRV is looking quite high and risky:

Based on long term MVRV we're still due around 40% correction. To less risky levels. It's like 365d MVRV doesn't care about 30d MVRV and says 'we need to dump'.



Summing up


Crazy fees, decent active addresses, super intensive and bullish social chatter, overheated MVRV. Feels a bit risky on one side. On another side we do not see many bearish divergencies like spotted earlier. Want to make a bet on SanR?



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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Santrends
Nov 17, 2021

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