Ethereum price rally surged high in the past couple of hours accumulating the maximum green candles to surpass $3000. However, it appears to have attempted very hard to maintain the bullish trend, yet some of the corrections cannot be ignored nor ruled out.
In the current scenario, ETH price managed to cross not only $3000 but also $3100 being poised to hit the further levels. As the rally is always inclusive of some major and minor corrections, ETH bull run may also find such barriers very soon.
No matter, the dumps are not as steep as in the case of Ethereum, unlike Bitcoin, yet the move towards a 5-digit zone appears unshaken. According to an on-chain market analysis Glassnode, the NVT ratio has declined since mid-April.
As $ETH price reaches over $3,000 setting a new ATH, the NVT Ratio is driven back down towards this cycles lows.
Low NVT Ratios indicate transaction volumes are high and growing faster than the network market cap.
Today’s market strength is supported by volume settled on-chain. pic.twitter.com/xKP0ustbZq
— glassnode (@glassnode) May 3, 2021
The NVT ratio is the network value to transactions ratio used to spot the crypto bubbles and buying opportunities. As mentioned by Glassnode, the NVT indicating a bearish trend. As the transaction volume recorded was less than that of the market cap.
However, since the past fortnight, the trend has flipped and the transaction volume has increased considerably than the market cap. The ETH price was stagnant and trending sideways when NVT ratio indicated a bearish trend. Nevertheless, the Ethereum price rallied high touching skies as the ratio was flipped.
Collectively, ETH price rally appears to be poised to surge towards the north to hit $5000 initially. And further strongly head towards a 5-digit zone very soon. Regardless of slight pullbacks Ethereum price may keep the bullish momentum intact.