Is Ethereum in for a Big move? ETH Pricing Fundamentals Have a Lot to Say About Its Value
Ethereum’s on the chain and off chain fundamentals are strongest than they have been in years with its price showing great potential becoming the “most attractive alt”.
In the past three months, Ethereum has surged 62 percent from $103 in early February to the current $167. Yesterday, we saw ETH going above $170 that according to experts is primed for even bigger gains.
If we take a look at the fundamentals, they paint a pretty bullish picture as Spencer Noon shares a thread analyzing these fundamentals and trying to answer if Ethereum is gearing up for a big move.
1/17. The price of ETH is +8% in the past 7 days. Are we in for a bigger move?
Let's have a look at the fundamentals. Thread:
— Spencer Noon 🕛 (@spencernoon) May 7, 2019
Constant On Chain Growth
Starting with the on-chain indicators, the number of new addresses being created on Ethereum each day has been growing for the past 3 months straight. This development came after almost a year of constant decline in new addresses creation.
Additionally, after Bitcoin, Ethereum is the only public blockchain that has a “meaningful” market for security paid in fees. He pointed out how in the past 24 hours, ETH fees totaled $53,666 which is 48 times more than the followed coin Litecoin at $1,101.
Per the ViewBase data that tracks exchange flows, over the last month, Ethereum has the 10th largest exchange outflow in comparison to 119 ERC20 tokens. This according to him “strongly” suggests that Ethereum is in the accumulation phase.
Moreover, the year-to-year growth of ETH locked in open finance applications has been staggering at more than 7,780 percent. Currently, there is about $362 million worth of ether locked up. However, it is not the all-time high level that could be due to an increase in MakerDAO’s stability fee. But despite these increases that make it expensive to have outstanding Dai, the amount of Dai locked in DeFi continues to grow.
Tremendous Off Chain Development
As for the off-chain indicators, the biggest development, Spencer Noon notes is the recent report of CFTC looking positive to approve ether futures which he says are a
“prerequisite for an ETF.”
At that time, Spencer had shared that just like Bitcoin, Ethereum would gain institutional interest because of these futures.
“It will be the first smart contract platform coin to be approved by the CFTC for futures, and it will also very likely be the first to have an ETF,” added Spencer.
Also, the first staking-enabled testnet for Ethereum 2.0 was launched today by Pryabs which is a major development on its path to Ethereum 2.0.
Technical Ethereum Price Analysis
According to the crypto trader and investor Don Alt ethereum is the “most attractive alt” right now as it is currently at support and aiming for resistance,
“Wouldn't want to see it close below green and if it breaks the recent low it's probably reaching quite a bit lower.”
The last time $ETH daily candle closed above the 200EMA?
350 days ago…. pic.twitter.com/YkfZ5fLhJs
— Josh Olszewicz (@CarpeNoctom) May 7, 2019
While Joe McCann says, “A pullback to test $170 and then a strong bounce sends ETH to test the YTD highs.” Not to forget Elon Musk’s “Ethereum”!
Spencer concludes that ETH fundamentals are the “strongest they've been in years” and with its performance, Ethereum will differentiate itself from the pack.
“Forget the future, ETH 1.0 is delivering now.”