Welcome to Barmy ‘s ‘On-chain Data Analysis’ Series

As usual, every other Sunday, we will have an Ethereum On-chain Data Analysis.

Ethereum is considered the ‘Queen of Altcoins’. So the On-chain data of Ethereum is also quite important and interesting to many investors.

Surely at the end of the year, most investors want to keep their money to welcome Christmas and welcome the new year, so let’s find out with Barmy if is that really the behavior of Ethereum users through the analysis briefly below!

GENERAL INFORMATION

Last week, the Fed announced the CPI, after having a strong bounce to the 1.4xx zone, now ETH has returned to the 1.2xx zone.

ETH has a strong support area at 1.0xx. I hope ETH will return to that area, create a 3-bottom pattern and have a strong bounce

This week, ETH’s Greed and Fear Index is at 37 (Fear)

MARKET ECONOMY OVERVIEW

Last week, US CPI was released at 7.1%, much lower than expected. This shows that US inflation has been cooling down. The CPI fell sharply from 7.7% in October and the index reached its closest peak of 9.1% in June this year.

Ethereum then, following in the footsteps of BTC, had a flash pump and hit the 1k4 mark, which almost all investors were looking forward to. Besides, other financial markets such as stocks, and gold also recorded gaining sessions right after the news on CPI was announced.

On Thursday, December 15, the Fed’s FOMC meeting took place and interest rates were announced. According to the economist, this is the last rate hike of the year with an increase as forecasted at 0.5%, corresponding to an interest rate of 4.5%.

ON-CHAIN ANALYSIS

BASIC INDEX

NUMBER OF ETH-HOLDING WALLETS

Cũng giống như BTC, chỉ số cơ bản nhất để phân tích On-chain ETH chính là số lượng ví hold ETH. Theo ghi nhận từ Glassnode, số lượng địa chỉ ví hold 10+ ETH vừa đạt ATH ở mốc 351,286 vào ngày 21st, Dec 2022

The number of wallet addresses holding 100+ ETH has also just reached the highest level in the past 21 months, at 48,269 wallets.

This gives us a statement, the more the market goes down, the more sharks gather. A positive sign helps us to believe that the next bull-run will come.

Besides, just like BTC, we can see the number of wallet addresses holding 0.01+ETH has just reached a 4-month high, at 22,783,795 wallets.

This once again shows that more and more investors believe in the development of ETH in the future. Not only whales, but retail investors have also started to buy the dip.

ETH BALANCE ON EXCHANGES

There is a similarity to BTC, when one looks at the balance of $ETH on exchanges, the index just hit a 4-year low, at 19,329,098,562 ETH. (According to data from Glassnode)

There are many basic indicators that a researcher can easily find, the above indicators are the simplest ones, all saying that: Like BTC, ETH is showing signs of consolidation from not only sharks but also from retail investors. These investors all have in common that they are waiting for the next crypto bull run.

ADVANCED INDEXES

ETH 2.0 Staking Rate

To serve the network upgrade, the ETH Stakers will have to do Staking within 1-2 years, and as more ETH is Stake, it will reduce the Supply Side for a fairly long time.

This indicator helps investors see how much % of the Total Supply of ETH is currently staking, the higher this index, the more positive it is on the price of ETH.

As can be seen, this index is still increasing continuously. It shows that, although the price is in the bear market, more and more investors believe in the ability of ETH to increase in price.

Ethereum: Total Value Staked

Along with that, the total value staked of Ethereum is also still increasing, with the December 25 mark of 15,430,528 ETH.

During the bull run from 2020 to now, it can be seen that the trend of institutional investors from the CeFi market is pouring more and more capital into Crypto. And in addition to the asset considered as “E-Gold” Bitcoin, there is a lot of information showing that institutional investors in recent times have shown more interest in ETH than BTC.

Along with the development of  Ethereum 2.0, the proposed EIP-1559 and The Merge just happened a few months ago causing ETH to have started deflation. Plus, given the huge potential of DeFi, ETH seems to be a more attractive investment than BTC.

CONCLUSION

As the ‘Queen of Altcoins’, analyzing ETH’s On-chain data is just as important as BTC.

Read more about BTC On-chain Analysis 18 Dec!

Currently, there are many tools and indicators used in the analysis of On-chain data, but they are too complicated, costly, and can bring low efficiency.

Therefore, I always believe that  “Simplicity is the ultimate sophistication”, just need to proficiently use the tools above along with solid background knowledge and information analysis skills. In the market, you can completely forecast the trend and make the right decisions.

The above is for information only, not investment advice. You should find out for yourself and give yourself the best investment decisions!

Thank you for reading, have a nice weekend!

Andrew – Barmy Team.