Why Ethereum Might Be Undervalued Right Now

in ethereum •  7 years ago 

Hello Steemit,

Recently, I was messing around on the ethtrader subreddit (https://www.reddit.com/r/ethtrader/) when I came across a link in the sidebar to a site called Cryptosignal. I hadn't ever seen the link or the website, so I checked it out, and what I found was interesting.

On https://cryptosign.al/, you can use multiple tools to find patterns between coin prices and other data. The front page loads a chart that shows the correlation between Bitcoin's price and its hash rate.

cryptosignal bitcoin.png

As you can see, the price of Bitcoin follows its hash rate pretty closely, with a correlation of .9.

I then checked out Ethereum.

cryptosignal ethereum.png

Ethereum's correlation between its hash rate and price is even higher at .95. However, as you can see near the end of the chart, the price line has dipped below the hash rate line pretty significantly during the past couple of weeks. If the trend continues with the price following the hash rate, then it looks as if Ethereum is undervalued right now and is bound for a good price increase soon.

Happy trading everyone!

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Yes to ICO's cashing out. I also think that the recent flash crash and uncertainty about August 1st may be contributing.

eth is affected by upraising ico let us not forget about that

ethereum has a great platform for ICO's

I'll also echo Lisa in the thoughts that ETH is currently being hit by a lot of liquidation to cash from companies raising huge amounts of uncapped capital though initial coin offering or token sales. The companies raising ETH are immediately selling most of it for fiat and there has been much more ICO activity based on the Ethereum platform.