Ethereum Whale Transactions Climb As Correlation With S&P 500 Continues
Categories: Bitcoin US
Over time, the crypto market has maintained a close relationship with the stock market. Ethereum, the second-largest cryptocurrency, rose in lockstep with U.S. stocks for the first time in February. As a result, the token’s 40-day correlation coefficient with the S&P 500 reached 0.65.Despite the brake anxious investors have put on price activity in the past week, the Ethereum (ETH) price is poised to rise over the weekend. Although trading volume has increased over the last week, and thus should have resulted in more consistent fluctuations, price responsiveness has been affected by geopolitical news, earnings, and stock market whipsaws. Ethereum Price Witnesses Turbulence The price of Ethereum has had a grueling week for investors and traders, with large swings in response to earnings, geopolitical events, and investors turning from risk-on to risk-off like a light switch. But with volatility comes opportunity, and as all of these events wind down towards the weekend, bulls will have the playground to themselves and can drive the price up to $3,500 if they pick the right entry levels. Expect the RSI to rise over 50 again, with lots of room before trading into overbought territory. Every positive situation in the crypto-verse is accompanied with a negative counterpart. That is, after all, a fact. This scenario is no exception. Crypto’s strong association with equities, in particular, might work wonders. Different reputable entities, on the other hand, have censored cautionary situations for the same.Arthur Hayes, the former CEO of BitMex, raised warning flags about this link in this instance. Surprisingly, the stock market appears to be headed for a huge drop through 2022 as the Federal Reserve tightens monetary policy to battle inflation.