The latest Santiment results, published in a monthly Cointelegraph Consulting newsletter, show that discussions around Ethereum have gone from extremely bearish to predominantly bullish. Historically, this has not meant good news for the token price.
Ethereum activity in the chain, measured in unique daily headlines, has recovered from a late summer dive. As a result of the latest rally, Ethereum reached a 3-week high of 420,610 addresses per day, up 25.2% from the previous day.
Another notable trend is Ethereum’s 365-day passive trading, which tracks the renewed movement of all tokens that have not previously changed in over a year. This figure is still relatively low after the lowest on 7 October, and is on average only 13,438 ETH per day, which indicates that long-term shareholders are still sitting there despite the recent price increase.
Profit / loss of the Ethereum network, which calculates the average profit or loss for all currencies whose addresses change daily, is a good way to find out which holders panic before loss. In the midst of a market crash on March 13, 2020, the Ethereum network reported a cumulative loss of $ 2,932,200 on non-performing loans: a 3-month low. Similarly, the Ethereum network suffered a cumulative loss of $ 998,998 on October 7, shortly before the coin jumped over $ 350.
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A series of low Ethereum over the past two months have shown the same pattern of behavior, indicating a wave of panic sales and short-term reallocation of Ethereum to strong hands, which has resulted in a more sustainable recovery. This indicator is still important as statisticians can calculate “blood in the streets”.
Ethereum’s 30-day MVRV ratio, which tracks average profits (or losses) for all addresses that served ETH over the past 30 days, indicates that short-term ETH holders are currently increasing their investments by an average of 8% on average. …
At present, Ethereum’s 30-day MVRV is still a bit far from what has historically been considered a “danger zone”, indicating the levels that short-term holders have previously tried to empty their bags.
Read the full newsletter here for details with detailed diagrams and photographs.