Santiment, a blockchain analytics company, writes that Ethereum’s NVT is still bullish.
NVT is the ratio of network value to transaction, which is viewed as the price-performance ratio for blockchain networks.
The data also shows that investors are amassing ETH masses, with the coins leaving the exchanges in no time at all. It is HODLED.
Ethereum’s on-chain trends are still favoring the bulls
Ethereum has seen a sharp drop from its weekly highs of $ 385. The coin fell below $ 370 on Tuesday morning as capital streamed back towards Bitcoin from the altcoin market.
Despite the local, short-term decline, the analysts remain bullish on ETH.
A main reason for this is that Ethereum’s on-chain trends are still hugely positive.
Santiment, a blockchain analytics firm, recently shared the chart below. It shows the price action of ETH in relation to the meter of network value to transactions, which is seen as the price / earnings ratio for blockchain networks.
On the current status of the relationship, Santiment writes that Ethereum is still „bullish“, but the trend is moving into „neutral territory“.
Chart of the price behavior of ETH in recent years with an overlay of the NVT model. Chart from blockchain analytics firm Santiment
Shortly before this post was published, the company had discovered that massive accumulation had occurred among Ethereum owners and investors. According to Santiment, the number of ETH held on exchanges has fallen quite dramatically in the past two months – and that suggests accumulation:
“$ ETH’s top 10 whale exchanges continued to move their funds to non-exchange wallets and move their holdings at an impressive pace. The 20.5% decline in tokens on the exchanges in the past 2 months indicates the price confidence of the top owners of #Ethereum. „
Chart of the price development of ETH in the last few months with an overlay of the number of the top 10 stock exchange holdings against the non-stock exchange holdings.
Chart from Santiment, a blockchain analytics company.
Not everyone is convinced of altcoins
However, not all investors and analysts in this room are convinced of altcoins like Ethereum in the current phase of the Bitcoin market cycle.
Kyle Davies, co-founder of the Three Arrows Capital crypto fund, recently hinted that bitcoin is likely to outperform altcoins dramatically. Previously, his business partner Su Zhu had pointed out that this was a time when BTC had to recover while altcoins were falling.
„You are about to find out why all the rich OG’s mostly hold $ BTC.“
Just today, BTC was able to rebound by 2% while Ethereum is down by 2%.