• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin 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 Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
Breaking News: Breaking: Digital Currency Group (DCG) Pulls The Plug On TradeBlock: The End Of An Era?
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin 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 Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
Bitcoinist.com
No Result
View All Result
Breaking News: Breaking: Digital Currency Group (DCG) Pulls The Plug On TradeBlock: The End Of An Era?
Ethereum
Advertisement

This Metric May Have Signaled The Ethereum’s Plunge Below $1,800

Hououin Kyouma by Hououin Kyouma
3 days ago
in Ethereum
0
Advertisement
Advertisement

Here’s the on-chain indicator that may have foreshadowed the recent dip in the price of Ethereum below the $1,800 level.

Ethereum Has Plunged After Multi-Collateral Dai Repaid Metric Spikes

According to data from the on-chain analytics firm Santiment, 43.4 million Dai was repaid in Wrapped ETH (WETH) during the past day. Multi-Collateral Dai (DAI) is a decentralized stablecoin built on the Ethereum blockchain that’s soft pegged to the US Dollar, meaning that its value remains fixed at $1.

Claim the JACKPOT with 55 FREE SPINS. Signup today to redeem your bonus.

The coin is called multi-collateral because it is backed by a mix of cryptocurrencies. An earlier version of the coin was Single-Collateral Dai (SAI), and it was only backed by one asset.

When Dai is minted (that is, new coins enter into circulation), users have to deposit their collateral into the smart contract vaults. In the context of the current discussion, the stablecoin tokens minted using WETH as collateral are of interest.

The “Multi-Collateral DAI created” is an indicator that measures the total amount of coins of the stablecoin that are being minted using WETH right now. The counterpart metric of this indicator is the “Multi-Collateral DAI repaid,” which naturally tracks the instances of WETH being returned after the issued tokens are destroyed.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

Here is a chart that shows the trend in these two Wrapped Ethereum indicators over the past year:

Wrapped Ethereum Dai repayment

One of the metrics seems to have observed a large value in recent days | Source: Santiment on Twitter

As you can see in the above graph, Santiment has highlighted an interesting pattern that the Ethereum price has followed in response to spikes in the Multi-Collateral Dai repaid indicator.

Related Reading: Bitcoin Diamond Hands Remain Strong As Supply Hits New ATH

It looks like whenever a large amount of Dai has been destroyed to release WETH, the price of the cryptocurrency has registered either a top or a bottom. In the past year, there have been two instances of this trend.

The first of them took place almost one year ago, right after the ETH price crashed due to the 3AC bankruptcy. This spike coincided with the bottom formation of the cryptocurrency.

The other one was earlier in February of this year and unlike the first one, this spike coincided with the asset forming a local top.

Recently, the indicator has once again observed a large spike, meaning that someone has withdrawn a large amount of the wrapped form of Ethereum that was previously being used to back Dai tokens.

In total, 43.4 million DAI has been destroyed with this latest spike. This is the third largest that the indicator’s value has been during the past 12 months and only the aforementioned instances of the metric registered withdrawals of larger scales.

Related Reading: Current Bitcoin Cycle Is Showing A Never-Before-Seen Trend

If the pattern of the previous spikes holds any weight at all, then the current Dai WETH repayments may also lead to Ethereum observing either a local top or a local bottom.

Yesterday, Ethereum plunged below the $1,800 level, so perhaps the decline was due to the indicator’s spike. Today, however, the cryptocurrency has already rebounded back above this level, so it’s hard to say whether the metric’s influence is already done with, or if the real effect is yet to come.

ETH Price

At the time of writing, Ethereum is trading around $1,800, down 1% in the last week.

Ethereum Price Chart

ETH has already recovered today | Source: ETHUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Hououin Kyouma

Hououin Kyouma

Loves to write, enthusiastic about cryptocurrency. Currently studying Physics at university.

Related Posts

Ethereum (ETH) Whales

Ethereum Whales On The Rise, Acquire Over $9 Billion ETH In 2023

4 hours ago
Ethereum Open Interest

Ethereum Traders Scrambling For The Exits After Price Crash

4 days ago
Ethereum Founder Vitalik Buterin Cautions Against Overloading Consensus

Ethereum Founder Vitalik Buterin Cautions Against Overloading Consensus

6 days ago
Solidity Ethereum update

Ethereum’s Programming Language Updated, Here’s Why Gas Fees May Drop

6 days ago
Ethereum

Ethereum Exchange Supply At New All-Time Low, Investors Accumulating?

2 weeks ago
Ethereum

Burning Bright: Why Devs Believe MEV-Burn Will Help Ethereum Reach New Heights

3 weeks ago

Premium Partners

Premium Casino Partners

Play Finance

Top Casinos

Trust Dice
Trust Dice
Punt Casino
Punt Casino
mBit
mBit
1xBit
1xBit
K8
K8

Press Releases

  • Polygon (MATIC) and Tron (TRX) Price Prediction: TMS...

    2 hours ago
  • TMS Network (TMSN) Attracts Big Attention Amidst Binance...

    2 hours ago
  • Unveiling Dogetti, Pepe, and Floki – 3...

    2 hours ago
  • Q3 Expectations: Exploring Cosmos, and Caged Beasts In the...

    2 hours ago
  • How Avalanche And Solana Could Help DogeMiyagi Master The...

    2 hours ago

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
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin 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 Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance

© 2022 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.