Ethereum’s Positive Indicators: Are We on the Verge of a Major Price Rally?
According to Santiment, a reputable analytics firm, Ethereum (ETH) shows positive signs after the Shapella upgrade.
The firm suggests that the large number of traders betting against ETH following the upgrade could trigger a price surge.
Santiment also highlights the perpetual contract funding rates on Deribit, which have shown significant swings between shorts and longs in the past three months.
The price began to rise once funding rates became neutral, but there is a prevalent shorting trend. Santiment interprets this as a bullish signal, as more liquidations could fuel further price rises.
A short squeeze could trigger further rallies as traders rush to buy back the assets to cover their losses.
Santiment warns that the number of transactions involving profits is the highest it has been since January 20th, which could temporarily push prices down.
However, ETH’s MVRV is currently at 9.95%, indicating a higher risk of a drop, but not yet at an alarming level.
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However, the firm also notes a bearish signal in the high number of transactions involving profits, which had not reached such high ratios since January 20th, when there was a market correction.
Another bearish signal is indicated by the significant decline in the number of ETH’s shark and whale holders who are selling.
Santiment also considers ETH’s 30-day market value to realized value (MVRV) to detect overbought or oversold conditions. While the MVRV is high, it has not yet reached a level of concern.
At the time of writing ETH is trading at $2,100 after a 13% surge in the past week.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
