• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Price & Market
Cap Data from
Nomics Logo Nomics Logo
Bitcoinist.com
Join Student Coin ICO
No Result
View All Result
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining
Bitcoinist.com
No Result
View All Result
ethereum
Nexo

Last 2 Times This On-Chain Signal Appeared, Ethereum Crashed. It’s Back Again

Nick Chong by Nick Chong
11 months ago
in Ethereum
0

Ethereum has been on an extremely strong rally since the March lows, recovering to a local high of $250 from $88. This nearly 200% performance has allowed the cryptocurrency to strongly outperform any other established and investable asset.

On-chain metrics, however, show that the cryptocurrency is primed to correct lower.

Related Reading: Bitcoin Is About to See a Crucial Breakout: 3 Factors Show Upside Is Likely 

Ethereum Is Primed for a Correction, On-Chain Metrics Show

Blockchain analytics firm Glassnode revealed that with the recent rally, 80% of the Ethereum market supply is in profit. This means that the average ETH holder is likely in profit, assuming a somewhat equal distribution of coins.

This is pertinent to ETH’s trend as the last two times this much of the Ethereum supply was in profit, the cryptocurrency crashed. In 2019, prices retraced from $360 to $120; and earlier this year, prices dropped from $290 to $88.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!
Image
Ethereum on-chain metrics shared by cryptocurrency analytics firm Glassnode (@Glassnode on Twitter).

Other on-chain metrics have also accentuated that the expectations of downside for the Ethereum price are valid.

The below screenshot is from the blockchain analytics firm IntoTheBlock. It depicts the firm’s Ethereum dashboard.

Six out of the company’s seven core metrics — net network growth, in the money, concentration (of coins), smart price, bid-ask volume imbalance, and futures momentum — are “neutral.”

The final core metric tracked by IntoTheBlock, large transactions, is “bearish.” The large transactions metric tracks the number of ETH transactions worth in excess of $100,000 that take place every day.

On-chain analysis of Ethereum shared by blockchain analytics firm IntoTheBlock
On-chain analysis of Ethereum shared by blockchain analytics firm IntoTheBlock. Current as of June 9th.

On-chain metrics do not always correspond with price action. But the lower the fundamental demand is for a cryptocurrency, the lower price it should trade at — and vice-versa too.

Corroborated By Technicals

Technical analysis corroborates the bearish narrative further.

As reported by Bitcoinist previously, analyst Josh Olszewicz from Brave New Coin shared the chart below on June 7th.

It shows Ethereum recently formed a “head and shoulders” pattern, most often seen near the tops of trends, alongside a bearish diamond formation that may mark the start of a bearish reversal.

Ethereum
Image Courtesy of Josh Olszewicz

Adding to this, there’s a purported “storm” ready to ravage Ethereum investors.

Sister outlet NewsBTC reported on June 6th that a top analyst is expecting a “storm” to hit Ethereum investors, chalking the sentiment up to two technical factors:

  • Ethereum was recently rejected at a downtrend that has marked the top of rallies for the past year.
  • The Tom Demark (TD) Sequential recently printed a “9” candle for the first time since last year’s highs in June. “9” TD Sequential candles are often seen near inflection points in the trends of assets.
Image
ETH price chart shared by trader Crypto ISO
Featured Image from Shutterstock
Price tags: ethusd, ethbtc
Last 2 Times This On-Chain Signal Appeared, Ethereum Crashed. It's Back Again
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for many years now. My pieces and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2021 Bitcoinist.com. All Rights Reserved.
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.