I tweet As of May 30, lead ether developer (ETH) Tim Beiko has confirmed that a projected Ropsten testnet test of proof – of – work work can be expected to blend proof “around June 8th.
Interestingly enough, Ether’s price action is relatively unchanged despite the unexpected positive news. There was a spike of + 10% on May 30, but these gains were reversed between May 31 and June 2. It is very likely that the merger, which is currently scheduled for August, has not yet entered a price, which gives traders and investors an advantage to enter the market early.
It is necessary to monitor the data on a chain
From an investment and trading perspective, cryptocurrency markets have a distinct disadvantage compared to regulated markets and transparency. The stock market is filled with legally required briefings. In the stock market, the retail trader can identify how many shares of securities are short, which institution bought (or sold) a large amount of disclosures, bought or sold insiders, and many other types of information.
Cryptocurrency markets are not subject to such legal requirements. In fact, the public does not know whether bitcoin (BTC) or ether is bought and sold on a stock exchange the real cryptocurrency or type of internal derivatives used to facilitate liquidity. But cryptocurrency markets are something better than the stock market, and that is data. on a chain.
Details on a chain allow investors and traders to monitor blockchain network activity. They can answer questions: How much ether is sent to an exchange? Are there any significant transactions? Is a “whale” wallet more or less important? Details on a chain help decide whether a trader or investor should be bullish or bearish.
Details on a chain, which measures inflows and outflows, is often used to determine whether a cryptocurrency is bullish or bearish. Inflow metrics are cryptocurrencies that go into exchange from an outside wallet and are often seen as a sign of incoming pressure. Outflow metrics are cryptocurrencies that flow out of exchange to external wallets and are often seen as a token of accumulation or accumulation.
The number of entry transactions has remained relatively stable over the past three months, with a significant decline from mid-May.
- Change in flows over 24 hours: -13.50%.
- Evolution of flows over 7 days: -5.87%.
- Evolution of flows over 30 days: -8.08%.
However, the number of exit transactions has decreased since March. In addition, a major spike in outflows was recorded on May 12, the date of the last ether flash crash, and the subsequent outflow reduction was resumed.
- 24 hour output change: + 3.62%
- Change in departure over 7 days: + 8.87%.
- Exit change over 30 days: -1.56%.
It is important to note that outflows have increased since 29 May and inflows have decreased. This could be a bullish signal that big money is accumulating.
Read also: 3 key indicators that traders use to determine the start of the altcoin season
The price of ether is still at its lowest level and the oscillators are at an all time low
The upcoming Fusion event is one of the biggest in Ethereum history. It is not every day that you see the second most valuable cryptocurrency in the world stay at the 200-day low and lose more than 60% of its high all the time.
Perhaps the most important and relevant data for Ether is the location of the Relative Strength Index and the Composite Index.
The weekly Relative Strength Index remains in bullish market conditions, but sits just above the final oversold level of 40. The current value of 42.15 is the lowest since the week of March 18, 2019.
The composite index, likewise, is close to historical lows. The composite index, developed by Connie Brown, is essentially the RSI with a momentum indicator. It is an infinite oscillator capable of capturing variations that the RSI cannot capture. The weekly value of the composite index is the third lowest in ether history and the lowest since the week of March 26, 2018.
Large oversold readings on Ether’s weekly chart, rising outflows and contraction inflows can give Ether investors and traders a good reason to be bullish in the short term. However, any upside reaction is likely to be fast and sharp, but limited to the 2022 volume control point at $ 2,600.
The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. All investments and trades involve risk. You should do your own research before making a decision.