After breaking through the $1,300 mark on January 10, 2021, hitting $1,339 on the price chart, Ethereum fall down. However, although Ethereum has recovered, the speed of the above recovery has been slower than expected, and the latest correction of the Bitcoin price may be the cause of the delay. In fact, the association between Ethereum and Bitcoin has always been a double-edged sword. In the past, Ethereum’s correlation dropped to a low of 0.50, while the most recent correlation dropped by nearly 22%.
As of press time, the correlation between Ethereum and Bitcoin is 0.69. Although Ethereum owns Bitcoin itself, the above correlation has declined due to the increase in the price of Bitcoin Unity. At the same time, the number of transactions Ethereum The network keeps increasing. Although the interest rate hike is not as serious as mentioned earlier, it will help ease the selling pressure of retail traders. This is essential to hit the new ATH and break through $1,100.
Ethereum’s whales have been found to have more purchases in the past week, but in contrast, the number of Ethereum addresses with a balance of 1000 ETH has dropped. Although no cascading sell orders have been found yet, as we approach the end of the important two-week period in the Ethereum market, the pressure to sell may increase.
At the time of writing, according to the data from Glassnode Metrics, the daily price change was -2.17%, and the number of addresses with balances of 1,000 or more ETH has dropped in the past two days.
In addition, as Ethereum reserves have decreased in the past two weeks, a bullish narrative has been established around its price. However, the exchange’s reserves continued to fall as prices fell. This shows the changes in traders’ sentiment towards the exchange.
Compared to the previous month, the total daily trading volume of futures is higher, so the narrative of Ethereum may be about to change. Based on the trading volume of futures OI and derivatives exchanges, Ethereum is expected to make a comeback. Although the sentiment of spot exchanges is in stark contrast with the sentiment of derivatives exchanges, more than $1,100 may resume the above-mentioned price movement.