Ethereum is so Underestimated. Does it mean that it will raise in price?

Lebedev

Lebedev

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Jun 26, 2018
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Some fundamental indicators of the Ethereum network show us that this cryptocurrency is extremely underestimated so it price can be way too bigger than it is now on the market. Another interesting aspect is that quality metrics (i.e. medium and average price of a transaction) affect the coin price much more than the quantity ones (number of active users and transactions).

Christopher Brookins, founder and head of Pugilist Ventures, has pointed on that these metrics may show ethereum being very undervalued. He found out that the metrics that counts ratio between quality and quantity rates of the network are very similar to movements of coin price. One of the rates is relation between quantity of online transactions and Network transaction volume to active addresses ratio (TAAR).

According to the words of Pugilist Ventures founder, in case of bitcoin network TAAR precedes price balance, in ethereum however TAAR can point on the future price moves. If TAAR is over 1000, it will confirm the 100$ per coin price. If the parameter is at level of 500, 300 or 100 it is not the best time to do investments, it will bring you no benefits.

op-ed2.png


Another metric that can be used for accurate prediction of ethereum price is ratio of active addresses quantity to the day medium transaction price (AAAT). This metric is negative at the moment and is equal to -0,09. If quantity of active addresses rises faster than the transaction commission, in theory price should go down.

Graph shows that ETH price used to be lower than AAAT curve, and their crossing meant price would be going up. In the december of 2018 however, these curves have crossed again, what in opinion of Brooking means that there is serious pressure on the price if the quality rates aren't changed.

op-ed3.png


What is more, there was an interested behavior of these metrics in the December 2015. TAAR that had been falling down and AAAT which had been moving in opposite direction crossed and changed their directions. Right after that ethereum has started its two years long rally.

There a similar situation these days: TAAR and AAAT are getting closer to each other. Christopher is sure in that if this patter happens it is going to take place somewhere in fourth quarter of 2019.

op-ed-4.png


After reaching top values, ethereum has lost almost 90% of its price, total quantity of transaction did the same. Quantity of active addresses became lower on 70% and quantity of transaction on 52%.
 
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Cedric James

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Shon Maykel

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Oct 9, 2019
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Some fundamental indicators of the Ethereum network show us that this cryptocurrency is extremely underestimated so it price can be way too bigger than it is now on the market. Another interesting aspect is that quality metrics (i.e. medium and average price of a transaction) affect the coin price much more than the quantity ones (number of active users and transactions).

Christopher Brookins, founder and head of Pugilist Ventures, has pointed on that these metrics may show ethereum being very undervalued. He found out that the metrics that counts ratio between quality and quantity rates of the network are very similar to movements of coin price. One of the rates is relation between quantity of online transactions and Network transaction volume to active addresses ratio (TAAR).

According to the words of Pugilist Ventures founder, in case of bitcoin network TAAR precedes price balance, in ethereum however TAAR can point on the future price moves. If TAAR is over 1000, it will confirm the 100$ per coin price. If the parameter is at level of 500, 300 or 100 it is not the best time to do investments, it will bring you no benefits.

View attachment 2404

Another metric that can be used for accurate prediction of ethereum price is ratio of active addresses quantity to the day medium transaction price (AAAT). This metric is negative at the moment and is equal to -0,09. If quantity of active addresses rises faster than the transaction commission, in theory price should go down.

Graph shows that ETH price used to be lower than AAAT curve, and their crossing meant price would be going up. In the december of 2018 however, these curves have crossed again, what in opinion of Brooking means that there is serious pressure on the price if the quality rates aren't changed.

View attachment 2405

What is more, there was an interested behavior of these metrics in the December 2015. TAAR that had been falling down and AAAT which had been moving in opposite direction crossed and changed their directions. Right after that ethereum has started its two years long rally.

There a similar situation these days: TAAR and AAAT are getting closer to each other. Christopher is sure in that if this patter happens it is going to take place somewhere in fourth quarter of 2019.

View attachment 2406

After reaching top values, ethereum has lost almost 90% of its price, total quantity of transaction did the same. Quantity of active addresses became lower on 70% and quantity of transaction on 52%.
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