The crypto market has exhibited a tight correlation with stocks within the last few years. For example, February reports indicated that the dominant altcoin, Ethereum, began moving closely with the United States stocks.
The report stated that Ethereum’s 40D correlation coefficient with S&P 500 stood at 0.56, hitting an ATH. Amidst soaring uncertainties facing the worldwide economy, Santiment’s new report discovered that RTH prices continued to follow the S&P 500 closely.
Santiment observed that S&P 500 retested a break level during August 25 intraday trading. The break-out region had previously created resistance to these assets. Thus, flipping the break level into support remains essential for bullish continuations. Santiment added that the retest levels should see a rebound to extend bullishness. Otherwise, Ethereum will unlikely maintain its ground.
Ethereum On-Chain
Santiment’s data shows Ethereum witnessed a substantial exchange supply uptick on August 18. Nevertheless, the leading altcoin saw its prices decline from $1,800 within no time. Etherscan data revealed that the supply increase saw Binance moving 1.49M ETHs from an unidentified address to Binance’s 8 wallet.
Moreover, August has seen a divergence between the Ethereum price and the network growth. Santiment’s data indicated that new wallets joining Ethereum dropped since early August. Nevertheless, the token’s price continued to print stable upsides.
The divergence suggests a weak market. Also, it indicates an absence of new market players joining to back the price, according to Santiment. Also, the analytic platform discovered the 7D MVRV confirmed the market hovered in the neutral territory after escaping the opportunity area. Moreover, the MVRV 30 displayed a negative reading of -5.925% during this publication.
Broad Market Outlook
The last day saw bears canceling gains seen over the past few sessions. The crypto market cap has surrendered the coveted $ 1 trillion again, changing hands at $965.80 during this writing after losing 6.89% over the past day.
Also, BTC lost approximately 6% within the last 24 hours to explore the $20K value area. While publishing this post, Bitcoin traded at $20,113.97. Such developments painted red in the crypto world, with altcoin suffering the most.
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