- The S&P 500 showed a price correction while Ethereum continued its bullish trend.
- Bid to Profit is over 67% at press time, which is a four-month high for Ethereum.
Ethereum price [ETH] It has risen significantly in recent days, indicating an upward trend. Accordingly, the recent activity of the S&P 500 and its correlation with cryptocurrencies may provide an indication of this.
Read Ethereum’s [ETH] Price forecast 2023-24
Ethereum prices and stocks are moving in opposite directions
Recent information indicated that the price of Ethereum was trending against the S&P 500. Per Santiments dataAt the time of publication, the S&P 500 index price is undergoing a correction in the wake of its previous upward trajectory.
When the S&P 500 (a proxy for stocks) and cryptocurrencies show no relation to each other, a bull market is said to have begun.
The Standard & Poor’s 500 (S&P 500) measures the collective stock market performance of 500 of the largest publicly traded companies in the United States. The index components are selected by Standard & Poor’s, the global division of Standard & Poor’s, and broadly represent the US stock market.
The percentage of profit reached the highest level in four months
In addition to the movement of the stock market, the bid-to-earnings ratio is a major sign of the rise of Ethereum. More than 67% of the supply was profitable, as evidenced by data from Glassnode.
The graph also showed that the current level of Bid to Profit ratio was the highest in four months. The importance of this statistic in evaluating the upside of Ethereum is that the higher the percentage range in profit, the higher the probability of a bull run.
MVRV shows low loss
When the 365-day market value to realized value (MVRV) ratio is included, the bull market argument becomes even stronger. The MVRV was around 6.3% at the time of writing. The current MVRV level indicated a 6% decline in the value of Ethereum.
Although it was a loss, the extension to make up for the previous loss indicated a bull market. Still, it’s going to be a huge run-in when it turns a 365-day hold into a profit.
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Ethereum remains in the overbought zone
The daily time frame chart of Ethereum price has shown that it is trading near $1550 at the time of writing. The current price area represents a gain of approximately 30% at the time of publication, as calculated using the price range tool.
Additionally, readings on the Ethereum Relative Strength Index (RSI) indicated that the price has been relatively stable in the overbought territory.