The crypto market has collapsed in recent days. Ethereum reported a crash of the Week highs in 177 $ to a local Low at 152 $ – a decline of almost 15 percent. Bitcoin, in contrast, registered a relatively mild, but still considerable correction of nine per cent.
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Key factors suggest that ETH will soon experience a Comeback
Even if the correction may have brought some traders to a bearish posture: The market trends suggest that the majority of the investors (or at least a significant participant) believes firmly in the fact that Ethereum is on the way to the top.
Su Zhu from the crypto – Forex-Fund “Three Arrows Capital,” about a large Ethereum-Buy-commented-Wall on Bitfinex on 10. April, where the buyer charges the commandments in the value of 250,000 ETH in the value of 159 to 162 of the Dollar, causing costs of about 40 million dollars.
Su Zhu’s observation of this fast purchases is confirmed by the margin of the market data from Bitfinex. As a crypto-Trader tells, are currently 1.8% of the circulating supply of the entire ETH-money basis “, Margin Long on Bitfinex”, where recently alone in four hours to 250,000 ETH were added to these positions.
It is not only the strong buying pressure on Bitfinex, the stresses that Ethereum signs for a continuation of the bull shows run.
Metrics into theblock, such as “In the Money”, the profitability of holders of crypto-to track currencies, and the “Bid-Ask Volume Imbalance” that determine in which direction the overall market, a crypto-currency tends to suggest that Ethereum is “mostly bullish”, in contrast to neutral or bearish.
Taken together, all these data suggest that the demand for Ethereum is growing – and the evidence suggests that the price of ETH will soon continue to rise.
News event Boom of the ETH-spread signals
In order to give the above-mentioned signs of even more credibility, it was revealed in the last days, that Reddit, the giant Social Media platform with literally hundreds of millions of monthly active users – have tried in the crypto-currency, Ethereum.
This was confirmed on Friday to Decrypt, the a spokeswoman for the American company announced that Reddit “works with a community to test a function that represents the participation of a user to a community”.
Thus, it relates to a new Reddit Feature that is supposedly in the Beta stage, and “Community Points” will be called. This is Ethereum-based ERC-20-Token, which differ from the traditional “Karma”-System of the Social Media forum.
Although exact details are hard to come by, were the members of the Ethereum community about this news and very pleased.
Ryan Sean Adams, a crypto-Investor in the myth of Capital and the author of the newsletter, “Bankless”, expressed the mood well when he wrote:
“Reddit (working on) a Community Token System… Ethereum. This could mean 100x DeFi-user? Would not need much.“