Blockchain News

Ethereum [ETH] Metric Sees Correction: Hopes of a Bull Run Rise

The price of Ethereum [ETH] has risen considerably in recent days, indicating a bull trend. As a result, the recent activity of the S&P 500 metric and its link with crypto may provide some clue.

According to recent data, the price of Ethereum is trending in the opposite direction of the S&P 500. According to Santiment data, the price of the S&P 500 index has corrected continuing its prior increasing trajectory at the time of publication.

A bull market is thought to have commenced when the S&P 500 (a proxy for equities) and cryptocurrency exhibit no link to one another.

The Standard & Poor’s 500 (S&P 500) index tracks the performance of the 500 largest publicly traded firms in the United States. Standard & Poor’s, a S & P Global company, selects the index components, which essentially represent the US stock market.

Aside from the stock market, the percentage of supply in profit is a leading indicator of an Ethereum bull run. According to Glassnode data, over 67% of the Percent Supply was profitable.

The graph also revealed that the current level of the Profit Percentage Supply was the greatest in four months. The relevance of this statistic in assessing the Ethereum bull run is that the higher the Profit Percentage, the more likely a bull run is in play.

The case for a bull market becomes stronger when the 365-day Market Value to Realized Value (MVRV) ratio is included. At the time of writing, the MVRV ratio was around 6.3%. The current MVRV level indicates a 6% decline in Ethereum’s value.

Despite the loss, the time it took to recoup the previous loss showed a bull market. However, it would be a complete run if it turned the 365-day holdings into profit.

As of this writing, the price of Ethereum was trading near $1,550 on a daily timescale chart. According to the Price Range tool, the current price area reflected a gain of roughly 30% at press time.

Furthermore, the Relative Strength Index (RSI) data for Ethereum suggested that the price was rather constant in the overbought zone.

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