Ethereum’s Historical Top Signal Absent in Current Cycle

John Darbie
Photo: Finoracle.net

This Historical Ethereum Top Signal Is Yet To Appear This Cycle

Ethereum Foundation hasn't been making any major sales during this bull market, suggesting that a peak may not have been reached yet.

On-Chain Data Suggests Missing Signal

On-chain data indicates a historical signal usually seen at Ethereum peaks hasn't appeared in the current cycle. The Ethereum Foundation Wallets have not exhibited large outflows so far in this market surge.

Historical Pattern of Ethereum Peaks

According to market intelligence platform IntoTheBlock, Ethereum has shown a specific pattern at previous market peaks. This pattern involves the netflows for wallets associated with the Ethereum Foundation, a non-profit supporting the cryptocurrency and its ecosystem.

In the past, the metric indicated large negative netflows—large amounts of ETH moving out of the Foundation's wallets. Significant sales from these wallets have historically coincided with market peaks.

Current Metrics and Their Implications

Over recent months, the netflows have been relatively neutral even though Ethereum's price has surged. This suggests the Ethereum Foundation hasn’t been making major sales during this bull run. Historically, the Foundation's sales often align closely with market tops.

This neutral netflow could mean that a market peak hasn't been reached, or it could imply a strategic shift by the Foundation that renders the past trend less significant.

Possible Strategic Shift

Another possibility is that the Ethereum Foundation has changed its strategy for this market cycle, meaning historical trends might not be as predictive.

Security Incident

In other news, the Ethereum Foundation's official email was recently compromised. The organization is actively working to resolve the issue. In a follow-up, the team informed subscribers that the previous email announcing a "staking platform" resulted from this compromise.

ETH Price Update

Ethereum fell below $3,300 yesterday but has since rebounded above $3,400. The asset's price has rallied over the past day.

Keep an eye on Ethereum's foundation wallet activities and price metrics, as they historically provide valuable market insights.

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John Darbie is a seasoned cryptocurrency analyst and writer with over 10 years of experience in the blockchain and digital assets industry. A graduate of MIT with a degree in Computer Science and Engineering, John specializes in blockchain technology, cryptocurrency markets, and decentralized finance (DeFi). His insights have been featured in leading publications such as CoinDesk, CryptoSlate, and Bitcoin Magazine. John’s articles are renowned for their thorough research, clear explanations, and practical insights, making them a reliable source of information for readers interested in cryptocurrency. He actively follows industry trends and developments, regularly participating in blockchain conferences and webinars. With a strong reputation for expertise, authoritativeness, and trustworthiness, John Darbie continues to provide high-quality content that helps individuals and businesses navigate the evolving world of digital assets.