Traders have turned their attention to Ethereum and altcoins from Bitcoin
Ethereum is seeing a slight rally compared to Bitcoin, rising 1.94% over the past 24 hours to $1,634. At press time, bitcoin was trading modestly at $21,339. According to the on-chain analytics firm sentiment“Traders are shifting their attention from Bitcoin to Ethereum and Altcoins.”
The on-chain analytics firm also noted that Ethereum has correlated tightly with the S&P 500 while Bitcoin has fallen short. “Both Ethereum and the SP500 bounced all the way back to their respective May price levels in mid-August, but Bitcoin has still lagged behind,” Santiment wrote.
Based on the NVT model, which monitors token circulation, Santiment wrote, “Ethereum has seen some very up and down circulation in its last two years of rally. There are clearly 2 market cap assets from May 2020 to May 2021. And even once it faced some volatility from June 2021 to November 2021, its volatile movement was still enough to take it to an all-time high But outside of May and June of this year, which indicated that ETH was starting to sell a bit higher, there has been some very volatile circulation on the network and a lot of associated red bars throughout 2022.”
Santiment points to “shaky circulation” on the Ethereum network so far this year.
glassnode Reportedly, the Beacon Chain contract currently holds 220 deposits of ETH, which is a steady but significant inflow. This would indicate that a stable holding pattern has been achieved, while investors look for a successful merger anticipated in mid-September.
According to IntoTheBlock data, 54% of Ethereum addresses are in profit at the current price.
Ethereum Merge Concerns “Overblown”
Nick Hotz, an analyst at Arca Research, believes that most concerns about an Ethereum “merge” are exaggerated.
Nine “shadow forks” and three Ethereum testnets (Ropsten, Sepolia and Goerli) have successfully merged, according to Hotz. “Many of the hiccups seen in testing arose from the fact that these tests were not the real thing, whereas the actual Ethereum merge probably would have gone smoothly.”
As reported by U.Today, Ethereum developers favored a pre-disclosure date of 15 September. The estimated TTD was also confirmed by ETH creator Vitalik Buterin.
“When the TTD is reached, Ethereum will switch to proof-of-stake, regardless of any hiccups,” Hotz wrote.
