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Understanding Ethereum Metrics | BTC, XRP, ADA, COMP Ideas

11 May, 2021 Martin Petkov
Ethereum Metrics

Hello and welcome, everyone. It's Martin here with CryptoGains. Today, we're discussing Ethereum's rally in the context of insights from the analytical platform Skew.

First of all, what we're observing on this chart is that the Ethereum market cap as a percentage of Bitcoin's market cap is rapidly approaching 50%. Once this psychological level is breached, we could start hearing talks about 'flippening', which essentially means that Ethereum's overall market cap may exceed that of Bitcoin, which, of course, is going to pave the way for a massive rally in Ethereum. Next, now this insightful chart shows a very steep and very significant increase in the volume of the CME Ether Futures, with total open interest and volumes now nearing $1 billion for the first time in the history of Ethereum. This signifies the substantial institutional interest behind trading Ethereum derivatives, therefore, huge institutional support, as well.

Moreover, another reason for the rally behind Ethereum has been the increase in the total volume locked in decentralised finance protocols, mainly Aave, Uniswap, Compound, Maker and Curve Finance, which are the five biggest. The total volume locked now exceeding $50 billion, which is huge support behind the rally in Ethereum. Additionally, what we can see on that chart is that the premium, the implied volatility spread between Ethereum and Bitcoin, is also increasing. This suggests that traders at the moment expect more volatility in Ethereum compared to Bitcoin.

And finally, here we can see a chart of how the different options, prices and probabilities are positioned over the coming months. On the left-hand side, here on the x-axis, we have Probability. And on the y-axis, we have the different prices, and we can see that the market is anticipating 10% probability of Ethereum reaching $10,000 by the end of the year. And now, armed with these insights, let's move to the technical charts and see how you can trade them.

Beginning with Bitcoin versus Tether, the pivot point is $55,300. And above that level, there is a good opportunity to buy Bitcoin, with the first target at $56,000 and then the next one at $57,000. Conversely, if we break below $55,300, we could be retesting the support on the short side at $54,600 to as low as $53,500.

And, now, let's take a look at Ethereum. The pivot point for Ethereum sits at $3920. Above that level, long positions, buying Ethereum, with targets at $3978 and $4038, which are the nearest resistance areas. Conversely, a break below $3920 will pave the way for opening short positions, with targets at $3850 and $3800.

And, now, let's move to Ripple. After a very deep correction, Ripple is stabilising and finding strong support around $1.42. So, above that level, based on horizontal support and resistance, buying Ripple, with targets at $1.45 and then at $1.50 on the long side. Conversely, if we break below $1.42, it may be wiser to sell Ripple, with targets on the short side at $1.366 and $1.30.

 And, now, let's move to Cardano. The pivot point for Cardano is $1.65. Above that level, buying Cardano, with targets at $1.685 and $1.74. Conversely, below $1.65, the downside prevails, with a target at $1.60.

And, finally, let's take a look at Compound. $820, as you can see, is the pivotal point for Compound. And above that level, buying Compound, with a target at the all-time high at $847, one of the best performing cryptos that are not experiencing major corrections the last few days. However, below $820, we could see a pullback, taking us back down to $810 and $800.

These are all the insights for today. As always, keep learning with the video education section in the CryptoGains market insights subsection. And, of course, join the Crypto Signals Made Easy channel for daily analysis, insightful articles and trading ideas. Thanks for joining me today. Trade wisely, and I'll see you soon.


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