Ethereum On-Chain Trends Still Favoring Bulls
Ethereum has undergone a strong drop from its weekly highs around $385. The coin fell under $370 on Tuesday morning as capital flooded from the altcoin market back towards Bitcoin, which has underperformed altcoins over the past six months.
Despite the local, short-term drop, analysts remain bullish on ETH.
One key reason why this is the case is that Ethereum’s on-chain trends are still bullish.
Santiment, a blockchain analytics firm, recently shared the chart seen below. it shows ETH’s price action relative to the network value to transactions metric, which is seen as a price-to-earnings ratio for blockchain networks.
On the current state of the ratio, Santiment wrote that Ethereum is still “bullish” but the trend is moving into “neutral territory.”
Chart of ETH's price action over the past few years with an overlay of the NVT model. Chart from Santiment, a blockchain analytics firm.
This post comes shortly after the firm noted that a spirit of accumulation has appeared amongst Ethereum holders and investors. Santiment recently reported that the number of ETH held on exchanges has dropped rather dramatically in the past two months, suggesting accumulation:
Chart of ETH's price action over the past few months with an overlay of the number of top 10 exchange holdings vs. non-exchange holdings. Chart from Santiment, a blockchain analytics firm.
Not Everyone Is Convinced of Altcoins
Not all investors and analysts in the space are convinced of altcoins such as Ethereum in the current phase of the Bitcoin market cycle, though.
Kyle Davies, a co-founder of crypto fund Three Arrows Capital, recently suggested that Bitcoin is likely to dramatically outpace altcoins. This came shortly after his business partner Su Zhu made a similar comment, suggesting that this is a time for BTC to rally while altcoins sink.
Just today, BTC rallied 2% as Ethereum sunk 2%.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com On-Chain Ethereum Trends Favor Bulls Despite 5% Drop From Local Highs
Originally from Bitcoinist.com https://ift.tt/3dNuFMG
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