The buzz of the London hardfork stood true to the rumors as was reflected in Ethereum’s price. Ethereum smashed through the $3k level highlighting a hike of 13% in less than 24 hours trading at $3.1K at press time.
Bearish metrics turning bullish, finally
While Ethereum’s futures market looked pretty good in terms of market expectations the spot market seemed to be doing ‘more talking, less doing’ as highlighted in a previous article. However, with ETH’s price aiming for the $3540 resistance, metrics that earlier gave off a bearish look were also looking less daunting.
A Santiment report had highlighted how in spite of good social sentiment and social dominance Ethereum wasn’t bullish and one reason for the same was that its daily active addresses were ‘dangerously declining on a growing price.’ At the time of writing, however, daily active addresses noted an almost 10% spike as compared to the previous day.
Source: Sanbase
Even though ETH’s RSI had reached the overbought zone, which many saw as an early sign of trend reversal, it is more likely that ETH may test the next resistance considering its trajectory, which is pretty bullish at the time of writing. Further, Ethereum being above all its simple moving averages with its price in an uptrend is another sign that this rally is looking strong.
Additionally, one more notable thing was that there have been large exchange outflows as prices continue to rise. In light of the high RSI and buying pressure, an increase in outflows from exchanges could possibly mean an increase of HODL positions of traders in order to store coins in their own wallets.
Ethereum and Bitcoin
Ethereum’s futures market was looking good and finally, there seemed to be some decent activity in Ethereum’s spot market too. However, the million-dollar question which always pops up is, ‘how was the top alt looking against the king coin.’ Even though Ethereum’s price as a percentage of Bitcoin’s price saw a sharp spike since July end, there were some places where Ethereum was having a hard time catching up with Bitcoin.
Source: Skew
Even with Ethereum’s price going up the way it was, the larger market still expected more from BTC. This was noticeable in the moderate spikes registered by ETH-BTC implied volatility spread which suggested that the market expected BTC to go higher.
That being said, one thing which could be said with certainty at this point is that Ethereum’s bull rally had begun and some interesting twists and turns were in store for the top alt.
