Will Ethereum [ETH] follow Bitcoins [BTC] lead while the market rises?
- Analysts suggested that Ethereum could soon follow Bitcoin’s rally.
- NFT trades and lowering of gas charges may affect network activity in the long run.
Bitcoin [BTC] has seen quite a rise in recent days, which has inspired a lot of positive speculation about the royal coin. However, it appears that Ethereum [ETH] will also soon join the rally and see an increase in prices.
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Where BTC Goes ETH Follows?
According to analyst crypto sunmoon at CryptoQuant, the fall in the prices of Bitcoin and Ethereum from March 9-13 resulted in a rapid decline in currency reserves. It is possible that investors took advantage of the situation by depositing more Bitcoin on exchanges than they bought during the subsequent downturn.
Compared to Bitcoin, Ethereum has not experienced a significant increase and the number of withdrawals has remained low. However, Sunmoon believes that when Bitcoin’s upward trend is fully realized, there could be a significant increase in Ethereum’s value.
Another positive indicator for Ethereum will be the increasing number of addresses on the network. According to Glassnode’s data, addresses with more than 0.01 ETH have reached one eight months high.
However, overall activity on the network may soon decrease. This will be due to the falling NFT trades on the Ethereum network. This suggested that users lost interest in Ethereum-based NFTs.
Another indicator of the same would be the falling gas consumption, which suggests that activity on the Ethereum network has fallen.
Source: Sentiment
Although ETH NFT interest has begun to decline, Open Interest had begun to rise at press time.
As the Shanghai upgrade approaches, many traders will be interested in betting on the future of Ethereum. However, it is important to note that high open interest also means that there may be high volatility in the future.
📈 #Ethereum $ETH Futures Contracts Open Interest just hit a 6-month high of $625,263,663 on #Deribit
The previous 6-month high of $623,061,491 was observed on March 20, 2023
See calculation: pic.twitter.com/LduET6sFll
— glassnode alerts (@glassnodealerts) March 21, 2023
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Realistic or not, here is ETH’s market value in BTC
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At press time, trading sentiment is largely bearish. This can be seen through Coinglass’ data, which shows that short positions against Ethereum increased in recent days.
Source: Coinglass
