The price action of Ethereum in the past 72 hours has been very chaotic, although Ethereum avoided the massive loss of the callback and climbed to a new all-time high of $2644 before that. As of press time, after Bitcoin retreated to 50,000 U.S. dollars, Ethereum is still working hard to maintain an upward trend. How did Ethereum make up for its losses in the first place? Why does Ethereum reach a new all-time high price, especially when other cryptocurrencies, including Bitcoin, pull back? The answer may be that Ethereum is rising as an independent digital asset. Ethereum may take over Bitcoin and once again promote the upsurge of cryptocurrency. Think about it, the selling pressure in the past few days has been a pain point in the cryptocurrency market, and various indicators have shown bearish signals across the board. However, as far as Ethereum is concerned, this pressure has been eased, and the supply of Ethereum on exchanges also illustrates this point. tionAccording to data from Santiment, the supply of the Ethereum exchange has recently dropped to its lowest point in a year. This means that Ethereum is being transferred from the exchange and replaced by the holdings and other savings of long-term holders. The discovery supports the price outlook and long-term reputation of Ethereum. Since the second half of 2020, Ethereum's daily demand deposits have continued to decline, which also highlights that more and more people are now insisting on holding their Ethereum instead of transferring them to exchanges for sale or dumping. Here, it is worth noting that the recent price adjustments have promoted a gentle Ethereum price cycle because continuous appreciation may lead to increased risks. Previously, when Bitcoin fell below US$50,000, Ethereum fell to US$2,150. Still, its 30-day MVRV (MVRV is a relative indicator that the circulating market value ratio to the realized market value) remained strong within the overestimation range. This means that although the trading price of Ethereum is around $2500, it is possible to see more increases before the market adjusts. The MVRV of Ethereum is expected to fall before starting the devaluation of the U.S. dollar driven by Bitcoin and Biden. Therefore, once the market stabilizes, Ethereum will have more room for upside. But when might that be? This is a question without a definite answer. When writing this report, Bitcoin and Ethereum are still pulling back, and the price of Bitcoin is below $51,000. In the next few trading days, taking into account the continuous integration phase is essential for Ethereum to restart the rebound. If Bitcoin continues its dumping behavior, then the rise of Ethereum is likely to be delayed again. If the past 72 hours can be used as evidence, Ethereum is indeed following in the footsteps of Bitcoin. But will this connection end soon? It may have already started. According to Santiment, "The price of Ethereum has finally deviated from its correla with the price of Bitcoin. This is good news." tionAccording to data from Santiment, the supply of the Ethereum exchange has recently dropped to its lowest point in a year. This means that Ethereum is being transferred from the exchange and replaced by the holdings and other savings of long-term holders. The discovery supports the price outlook and long-term reputation of Ethereum.
Since the second half of 2020, Ethereum's daily demand deposits have continued to decline, which also highlights that more and more people are now insisting on holding their Ethereum instead of transferring them to exchanges for sale or dumping. Here, it is worth noting that the recent price adjustments have promoted a gentle Ethereum price cycle because continuous appreciation may lead to increased risks. Previously, when Bitcoin fell below US$50,000, Ethereum fell to US$2,150. Still, its 30-day MVRV (MVRV is a relative indicator that the circulating market value ratio to the realized market value) remained strong within the overestimation range. This means that although the trading price of Ethereum is around $2500, it is possible to see more increases before the market adjusts. The MVRV of Ethereum is expected to fall before starting the devaluation of the U.S. dollar driven by Bitcoin and Biden. Therefore, once the market stabilizes, Ethereum will have more room for upside. But when might that be? This is a question without a definite answer. When writing this report, Bitcoin and Ethereum are still pulling back, and the price of Bitcoin is below $51,000. In the next few trading days, taking into account the continuous integration phase is essential for Ethereum to restart the rebound. If Bitcoin continues its dumping behavior, then the rise of Ethereum is likely to be delayed again. If the past 72 hours can be used as evidence, Ethereum is indeed following in the footsteps of Bitcoin. But will this connection end soon? It may have already started. According to Santiment, "The price of Ethereum has finally deviated from its correla with the price of Bitcoin. This is good news."
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