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Ethereum price finally topped $3K, but data suggests a reversal is nowhere in sight -Breaking

by Mike Robinson

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© Reuters

In traditional markets, there is an old rule that is more like a trading rule. It goes: “when the trend is negative, one can only be neutral or short,” meaning, bet on the price decrease. The problem is that a relief bounce tricks traders into believing that the negative prevailing sentiment has shifted into a buyers’ market.

For example, after analyzing Ether‘s (ETHIf one looks at the price chart (see below), it is possible to conclude that a bull market should start sooner than expected after a 41% drop. This is unfortunately a false assumption. Markets can survive in non-definition periods (trendwise).

Price of Ether at FTX in USD TradingView
8.8-hour funding rate for Ether perpetual Futures. Source: Coinglass
Average 7-day of native ETH token transfers per day, USD. Source: CoinMetrics
Dapps network activity over a 30-day period. Source: DappRadar

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