The humming of the London hard fork stayed true to rumors, which was reflected in the price of Ethereum. Ethereum broke the $ 3,000 mark, showing a 13% increase in less than 24 hours, trading at $ 3.1,000 at press time.
Bearish metrics are finally getting bullish
While Ethereum’s futures market looked pretty good in terms of market expectations, the spot market appeared to be “talking more, doing less,” as in a. highlighted Previous article. However, with ETH’s price targeting the $ 3,540 resistance, metrics that used to look bearish also looked less daunting.
A Santiment report had highlighted that despite good social sentiment and social dominance, Ethereum was not optimistic and one reason was that its daily active addresses “fell dangerously as the price rose”. However, at the time of writing, daily active addresses were seeing a nearly 10% increase compared to the previous day.
While ETH’s RSI had hit the overbought zone, which many viewed as an early sign of a turnaround, it is more likely that ETH could test the next resistance given its rather bullish performance at the time of writing. Additionally, the fact that Ethereum, especially its simple moving averages, is in an uptrend with its price, is another sign that this rally is looking strong.
It was also noteworthy that there were large foreign exchange outflows as prices continued to rise. Given the high RSI and buying pressure, an increase in outflows from exchanges could potentially spell an increase in traders’ HODL positions to store coins in their own wallets.
Ethereum and Bitcoin
The Ethereum futures market looked good, and finally, there seemed to be decent activity on the Ethereum spot market as well. However, the million dollar question that always comes up is, “How did the top alto compare to the king coin?” Although the price of Ethereum as a percentage of the price of Bitcoin has seen a sharp increase since the end of July, there have been a few places where Ethereum has struggled to catch up with Bitcoin.
Even if the price of Ethereum went up like this, the larger market was still expecting more from BTC. This was evident in the moderate spikes recorded by ETH-BTC implied volatility spreads, suggesting that the market was expecting BTC to rise.
That being said, it’s safe to say at this point that the Ethereum bull rally had begun and some interesting twists were in store for the top alto.