The buzz surrounding the London hardfork held true to the rumors, as evidenced by Ethereum’s price. Ethereum broke through the $3k barrier, highlighting a 13 percent increase in less than 24 hours, trading at $3.1K at press time.
Finally, bearish metrics are turning bullish.
While Ethereum’s futures market appeared to be doing well in terms of market expectations, the spot market appeared to be doing “more talking, less doing,” as highlighted in a previous article. However, with the price of ETH aiming for the $3540 resistance, metrics that were previously bearish were looking less daunting.
According to a Santiment report, despite good social sentiment and social dominance, Ethereum was not bullish, and one reason for this was that its daily active addresses were ‘dangerously declining on a rising price.’ However, at the time of writing, daily active addresses had increased by nearly 10% over the previous day.
Even though ETH’s RSI had reached the overbought zone, which many saw as an early sign of a trend reversal, it is more likely that ETH will test the next resistance given its current trajectory, which is bullish. Furthermore, Ethereum’s price is in an uptrend and is above all of its simple moving averages, indicating that this rally is gaining traction.
Furthermore, as prices continue to rise, there has been a significant outflow of foreign currency. Given the high RSI and buying pressure, an increase in outflows from exchanges could indicate an increase in traders’ HODL positions in order to store coins in their own wallets.
Bitcoin and Ethereum
Ethereum’s futures market was looking promising, and there appeared to be some decent activity in Ethereum’s spot market as well. The million-dollar question, however, is always, ‘How did the top alt look against the king coin?’ Despite the fact that Ethereum’s price as a percentage of Bitcoin’s price has seen a sharp increase since July’s end, there were some areas where Ethereum was struggling to catch up with Bitcoin.
Even with Ethereum’s price rising as it has, the larger market expected more from BTC. This was evident in the moderate spikes in the ETH-BTC implied volatility spread, indicating that the market expected BTC to rise.
That being said, one thing was certain at this point: Ethereum’s bull rally had begun, and the top alt was in for some interesting twists and turns.