While the correlation between the traditional entity and ETH remained negative, they moved closer together.
The altcoin could continue its recent recovery.
The correlation between Ethereum [ETH] and the Nasdaq composite index continues to move out of the far position they held in recent times.
With a maximum value of 1, the correlation between entities in the crypto sector and its traditional counterpart is determined by assessing price movement and performance over a period of time.
How much are 1,10,100 ETHs worth today?
Two on the same path
When the correlation coefficient is positive, it means that both assets are moving in a very similar direction. But a close correlation with the negative region indicates that the two assets are moving in opposite directions.
According to data from IntoTheBlock Capital Markets, ETH’s 90 days correlation coefficient with Nasdaq was -0.25.
Although negative, the data showed that the correlation had improved. Lately, ETH, like Bitcoin [BTC] significantly outperformed the Nasdaq stock index earlier this year.
While the crypto market landscape has changed, the closeness in correspondence may be related to ETH’s recent performance, which has kept its 30-day performance up 0.31%.
Meanwhile, ETH’s market value to realized value (MVRV) ratio has been able to recover from its previous trip into the red zone. At the time of writing, the statistic was 4.308%.
The MVRV ratio serves as a measure of an asset’s undervalued or overvalued condition. It also indicates the profit percentage achieved by the holders.
So the increase suggested that ETH holders have had some recovery recently, especially with the 3.18% increase in the last 24 hours.
On the technical side, the Moving Average Convergence Divergence (MACD) showed that the altcoin could soon overturn seller dominance.
At the time of writing, the trend-following momentum indicator revealed that the blue dynamic line had moved above the orange line. A situation like this leads to buyers gaining control of jurisdiction.
So there is a chance that ETH will hold the bullish streak for some time to come. In terms of the Chaikin Money Flow (CMF), the daily chart showed that the indicator had risen to 0.16.
Realistic or not, here is the market cap of ETH in BTC terms
The indicator uses a 21-day period to measure volume-weighted average accumulation and distribution.
Since the CMF was positive and approaching the closing price, it suggested that more accumulation had taken place. Therefore, there could be more strength to support the ETH uptick.
This post ETH, Nasdaq Correlation Grows Closer As The Altcoin…
was published first on https://ambcrypto.com/eth-inches-toward-strong-correlation-with-nasdaq-as-the-altcoin/