ETH Positive Price Action
What is the Question?🚨
Let’s examine ETH's positive price action this year:
- Looking at Ethereum Mainnet activity from block: 16310000 (Jan 1, 2023) to block 16420000 (Jan 16, 2023) what on-chain activity could correspond to the recent increases in ETH's price?
- What major dapps, tokens, or similar have risen with or more than ETH over that time span?
- How has user activity, including in specific protocols, changed over the time period?
Analyzed Topics:
- ETH and Other Tokens Price Price Positive Movements Since Jan 1st 2023
- ETH Buying or Selling Pressure
- ETH Transfers
- ETH Swaps
Introductionđźš©
What Is Ethereum?
At its core, Ethereum is a decentralized global software platform powered by blockchain technology. It is most commonly known for its native cryptocurrency, ether (ETH).
Ethereum can be used by anyone to create any secured digital technology. It has a token designed to pay for work done supporting the blockchain, but participants can also use it to pay for tangible goods and services if accepted.
Ethereum is designed to be scalable, programmable, secure, and decentralized. It is the blockchain of choice for developers and enterprises creating technology based upon it to change how many industries operate and how we go about our daily lives.
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How Does Ethereum Work?
Vitalik Buterin, credited with conceiving Ethereum, published a white paper to introduce it in 2014.3 The Ethereum platform was launched in 2015 by Buterin and Joe Lubin, founder of the blockchain software company ConsenSys.
The founders of Ethereum were among the first to consider the full potential of blockchain technology beyond just enabling the secure virtual payment method.
Since the launch of Ethereum, ether as a cryptocurrency has risen to become the second-largest cryptocurrency by market value. It is outranked only by Bitcoin.
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Method⚡
In this dashboard, i explored the reasons of January 2023 market positive moves and compare ETH price to other popular tokens especially ETH based ones. Then i analyzed ethereum buying and selling pressure and its transfers and swaps in the next steps. I analyzed these whole metrics since the beginning of ==January 2023==.
I used ==“crosschain.core.fact_hourly_prices”== and ==“crosschain.core.dim_asset_metadata”== to extract token prices and compare them to each other. Then used ==“ethereum.core.ez_eth_transfers”== for ethereum transfer data and ==“ethereum.core.ez_dex_swaps”== for ethereum swap data. I used all these tables from ==Ethereum.core== and ==crosschain.core== databases provided by Flipsidecrypto.
I analyzed these metrics and ETH activity since January 1st 2023 until January 16th 2023. (16 Days)
Findingsđź‘€
- In this section, i showed ETH price correlation with other tokens price especially ethereum based tokens since the beginning of January 2023 to see which tokens rised the most.
- From what we can see here, we found out crypto market was bullish since the beginning of new year. If we look closely, We can see that 2 tokens price increased more than others, SOL and NEAR.
- The Solana native token SOL, has increased over 130% in first 2 weeks of 2023 and the main reason of solana special hype besides whole market hype was the $Bonk token launch and its hype in solana ecosystem in early 2023.
- The second token that moved massively was NEAR which increased over 75% in first 2 weeks of 2023.
- Rest of the tokens like ETH or BTC moved pretty much the same and increased almost 30% as I showed the exact amount of ETH and BTC prices on Jan 1st and 16th and their movement by percentage.
- The biggest gainer among popular tokens in this period was SOL with over 135% and the biggest ETH based tokens gainer was COMP with over 40% positive movement.
Findingsđź‘€
- Although the market was bullish and tokens were rising, ETH experienced more sell pressure than buy on every day of 2023 since its start.
- The highest selling volume on ETH in its first 2 weeks happened on Jan 14th with over 3.5B selling pressure. when users thought that the bullish movements are over and the tokens are going to fall again because in overall, the market is still bearish.
Findingsđź‘€
- Here, i attempted to show eth transfers to where and which platforms since the beginning of January 2023.
- It is interesting that we can see users sent their ETH to DEXs more than CEXs and it seems they lost their trusts on CEXs after they saw what happened to FTX and its investors in November 2022.
- Most of the transfers happened on Jan 14th as i said, users thought the bullish market is over and wants to transfer their assets to CEXs or DEXs to sell them.
- Binance and Coinbase were the most popular CEXs which users sent their ETH to them and among DEXs, we can see Uniswap is in the lead and received the most transfers in this period like over 2.5M ETH and over 3.5B in USD since start of 2023 followed by 1inch in the second place among DEXs with almost 1M received ETH and 1B USD in total.
- CEXs experienced pretty much the same inflow and outflow on January first 2 weeks but on January 14th it was different. CEXs recorded 58K positive netflow and as i said earlier, users were sending their ETH to sell them on that day.
Findingsđź‘€
- Since Jan 1st, users were mostly selling their ETH and swapping it out to another token with a net volume of -10.5M in ETH.
- ETH Swap activity was increasing day by day since start of 2023 and most of it was Swap FROM ETH.
- Second week of 2023 has recorded more swap activity than its first one with a massive increase on swappers and swap volume.
- The most swaps recorded on Uniswap v2, the most swappers recorded on Balancer, the most swap volume recorded on Uniswap v3.
- It is interesting that although Balancer ahs recorded the most number of swappers among Ethereum DEXs in first 16 days of January 2023, but it recorded the lowest number of swaps in this period too.
- Uniswap is completely outperforming other DEXs on Ethereum in terms of swap activity.
- Uniswap v3 which was leading on swap volume stats, surprisingly recorded more Swap TO ETH volume than FROM while it recorded more Swap FROM ETH number of swaps.
Conclsuionđź’ˇ
- There was not actually any specific reason for market hype since start of 2023, one reason is that SOL price increased a lot after its $Bonk token launch and it could’ve effected other tokens especially BTC and ETH too. the second reason is that US government recently announced that the USD inflation rate is 6.5% after it reached to 7.1% last month on December 2022 and because of that when everyone expected to see it increase but instead ot that it decreased, markets went up and experienced a little hype after the new year.
- As we observed SOL and NEAR were the biggest gainers among popular tokens on crypto with over 135% and 75% increases on their prices respectively.
- Most of ETH Based tokens actually performed better than ETH itself like COMP that gained over 40% since start of 2023.
- The most trading activity on ETH happened on Jan 14th, most users sent their ETH to DEXs and CEXs(more to DEXs) and sold their tokens in them. Users sold 3.5B worth of their tokens on that Day.
- Among Ethereum DEXs, Uniswap is completely outperforming other DEXs on swap activity and transfer activity. Also Binance is in the lead among crypto CEXs too.
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> Ethereum recently just reached to its merge day price on Jan 16th and the highest after early November, almost 2 months ago.
Why Is Ethereum Going Up?
Ethereum and other cryptocurrencies were originally trading in tandem with the broader market on Tuesday. However, by Wednesday morning crypto and the traditional markets had decoupled.
The broader markets began sinking again as inflation fears once again reared their heads. The crypto market continued its upward run amid the largest liquidation of short positions in 15 months.
Short positions are bets against price increases. Liquidations happen when investors no longer have the funds to cover their margin positions.
Initially, the price increases on Tuesday reflected a string of positive earnings reports as well as investor sentiment that the U.S. Federal Open Market Committee (FOMC) might start cooling its rate hikes soon.
Mohamed El-Erian, chief economic adviser at Allianz, said in an interview on CNBC that the Fed faces a new “trilemma” of problems that could soon lead to a slowing of rate hikes.
This trilemma, El-Erian said, includes “growth, inflation and financial stability.”
By Tuesday afternoon, the tech-heavy Nasdaq Composite, which cryptocurrencies have been trading in tandem with through most of 2022, was up nearly 2%, while bond yields and the dollar, which are usual safe havens during inflation times, dropped.
These moves signaled investor willingness to return to risk assets in hopes of a potential easing of interest rates by the Fed.
However, as more earnings reports surfaced at the end of the trading day, investor sentiment about the broader market shifted. The Nasdaq started Wednesday morning trading down more than 1%.
Crypto, however, remained strong.
Ethereum soared to $2,000 in mid-August before receding downward again. This late summer rally followed Ethereum’s bottom on June 18, when ETH dropped to its 52-week low of $880.
Between April and June, ETH was down more than 70%, dipping below the all-important $1,000 barrier in June.
Bitcoin (BTC) was only down 52% over the same period, bottoming out at $17,708 in June. Since then, BTC has recovered about 12% to around $20,000. ETH has gone up more than 68% since its bottom, breaking through the $1,500 barrier again.
![db_img](https://uploads.flipsidecrypto.com/product/images/odQDI2sKiOIm.webp)