Advertisment

• Santiment, a blockchain analytics firm, recently shared that Ethereum’s NVT is still “bullish”
• The NVT is the network value to transaction ratio, which is seen as a price-to-earnings ratio for blockchain networks.
• Data also shows that investors are accumulating ETH en-masse, with coins leaving exchanges at a rapid clip.

Ethereum On-Chain Trends Still Favoring Bulls

Ethereum has undergone a strong drop from its weekly highs around 5. The coin fell under 0 on Tuesday morning as capital flooded from the altcoin market back towards Bitcoin, which has underperformed altcoins over the past six months.
Kyle Davies, a co-founder of crypto fund Three Arrows Capital, recently suggested that Bitcoin is likely to dramatically outpace altcoins. This came shortly after his business partner Su Zhu made a similar comment, suggesting that this is a time for BTC to rally while altcoins sink.
On the current state of the ratio, Santiment wrote that Ethereum is still “bullish” but the trend is moving into “neutral territory.”
Chart of ETH’s price action over the past few months with an overlay of the number of top 10 exchange holdings vs. non-exchange holdings.
Chart from Santiment, a blockchain analytics firm.

Not Everyone Is Convinced of Altcoins

“$ETH’s top 10 whale exchange addresses have continued swapping their funds to non-exchange wallets, & moving holdings at an impressive rate. The 20.5% decrease in tokens on exchanges the past 2 months indicates price confidence by top #Ethereum holders.” Despite the local, short-term drop, analysts remain bullish on ETH.

Featured Image from Shutterstock
Price tags: ethusd, ethbtc
Charts from TradingView.com
On-Chain Ethereum Trends Favor Bulls Despite 5% Drop From Local Highs

Just today, BTC rallied 2% as Ethereum sunk 2%.
— Kyle Davies (@kyled116) October 19, 2020
Santiment, a blockchain analytics firm, recently shared the chart seen below. it shows ETH’s price action relative to the network value to transactions metric, which is seen as a price-to-earnings ratio for blockchain networks.

One key reason why this is the case is that Ethereum’s on-chain trends are still bullish.

Chart of ETH’s price action over the past few years with an overlay of the NVT model.
Chart from Santiment, a blockchain analytics firm.

“You’re about to find out why all of the rich OG’s hold mostly $BTC.”
You’re about to find out why all of the rich OG’s hold mostly $BTC

Send bulk sms with Bitcoin and don’t worry If your link gets reported. We are constantly monitoring your links and We’ll pause your campaigns if any issue…