ETH, Nasdaq correlation grows closer as the altcoin…

• Though the correlation between the traditional entity and ETH remained negative, they closed in on each other.
• The altcoin might maintain its recent recovery.

The correlation between Ethereum [ETH] and the Nasdaq composite index continues to exit the distant position they have had in recent times. 

With a maximum value of 1, the correlation between entities in the crypto sector, and the traditional counterpart is determined by assessing the price movement and performance over a period of time.

How much are 1,10,100 ETHs worth today?

Two on the same path 

When the correlation coefficient is positive, it means that both assets are moving in a very similar direction. But a close correlation to the negative region indicates that the two assets are moving in opposite directions.

According to the IntoTheBlock Capital Markets data, ETH’s 90-day correlation coefficient with Nasdaq was -0.25. 

Source: IntoTheBlock

Although negative, the data showed that the correlation had improved. Lately, ETH, like Bitcoin [BTC] significantly outperformed the Nasdaq equity index earlier in the year.

While the crypto market landscape has changed, the closeness in correspondence could be connected to ETH’s recent performance which has left his 30-day performance in a 0.31% uptick.

Bullseye yet?

Meanwhile, ETH’s Market Value to Realized Value (MVRV) ratio has been able to recover from its previous journey into the red zone. At press time, the metric was 4.308%.

The MVRV ratio serves as a measure of the undervalued or overvalued state of an asset. It also indicates the rate of profits gained by holders.

Therefore, the increase suggested that ETH holders have had some recovery lately, especially with the 3.18% uptick in the last 24 hours.

Source: Santiment

On the technical side, the Moving Average Convergence Divergence (MACD) showed that the altcoin could soon overthrow the dominance of sellers. 

At the time of writing, the trend-following momentum indicator revealed that the blue dynamic line had risen above the orange line. A situation like this infers that buyers had gained command of the jurisdiction.

So, there is a chance that ETH maintains the bullish streak for some time. In terms of the Chaikin Money Flow (CMF), the daily chart showed that the indicator had increased to 0.16.

Realistic or not, here’s ETH’s market cap in BTC terms

The indicator uses a 21-day period to measure the volume-weighted average accumulation and distribution. 

Since the CMF was positive and nearing the closing price, it suggested that more accumulation had taken place. Therefore, there could be more strength backing the ETH uptick.

Source: TradingView