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Ethereum’s bull run – the blockchain perspective

Research by Jesus Rodriguez and Lucas Outumuro of IntoTheBlock

Ethereum has been experiencing a tremendous market momentum with a price increase of over 55 percent in this month. From a valuation standpoint, Ethereum has always been particularly complicated as it influenced not only by the performance of the native cryptocurrency but also all the token running on the Ethereum platform. That same characteristic makes it sometimes difficult to understand the factors influencing price movements. 

The recent Ethereum bull run has had marked footprints in the blockchain behavior of the crypto-asset. An analysis of the Ethereum blockchain reveals very interesting patterns that shed some light on the recent positive momentum as well as the current state of Ethereum from a financial standpoint.

As always, it is fascinating to compare some of the data points revealed by the blockchain datasets against traditional technical analysis methods.  

A technical analysis view of Ethereum’s price run Ethereum technical analysis (Source: IntoTheBlock)

A support-resistance analysis of Ether reveals that the crypto-asset recently broke out from the .618 Fibonacci level at $270. The next area of resistance would be around the $310 level, although there may be selling activity around $300 given that this represents a psychological threshold for most investors.

In terms of support, the recent $270 resistance is expected to turn into a buying area, as well as the trend line of the ascending channel in shorter time frames around $265.

The blockchain perspective

Utilizing statistical and machine learning methods to extract data from the blockchain, IntoTheBlock is able to formulate practical insights about underlying tokens. IntoTheBlock’s In/Out of the Money Around Current Price (IOMAP) uses machine learning to identify the ten most relevant clusters of investor positions at a range of plus-minus 15 percent of the current price. This provides g...

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