Ethereum, the second-largest digital asset with a recent market value of $ 18.4 billion, has lost almost 1% since the beginning of Wednesday and has remained unchanged on the daily. ETH / USD made an attempt to advance past $ 171.00 level, but the movement was unstable, and the digital currency fell beneath the level at $ 170.00.
As per the results discovered in a recent Binance study, the cryptocurrency space is progressing to a stricter connection between different assets; meanwhile, Ethereum has the most correlation with the remainder of the market with a coefficient of 0.69. Binance has published a cryptocurrency market review report.
Besides, studies indicated that correlation tends to increase in bear markets.
Typically, a correlation above 0.5 or below -0.5 is considered strong, while a value close to zero means that assets move independently and do not have or have very little linear connection.
The study reveals that connections amongst all pairs are mostly positive.
The remarkable revelation is the understanding that the largest alterations in asset connections occurred in the third quarter of 2019.
Based on a manual check of the connection matrices, this shows that assets may be more correlated with each other in adverse market price movements. Connectedly, digital assets are less connected to each other in movements up or to the side. Further analysis over a longer period may confirm this conclusion.
ETH / USD Is in a Narrow Range With a Bullish Bias
The coin has grown by 1% daily and has not changed much since the start of Wednesday.
ETH / USD made a move to advance past the level at $ 171.05, but the movement was unstable, and the digital coin fell beneath the level at $ 170.00.
On the daily time frame, Ethereum is trending within a strong trendline channel and is presently on the level at $ 168.15, which serves as strong short-term support for the price.
As soon as it is withdrawn, the bears can continue in the direction of the next barrier, structured by the low of this week on the level at $ 161.11.
And the subsequent psychological $160.00 level. On the off-chance that it’s broken, the moving average 13 on the daily level of $ 160.00 may be in the spotlight. This scenario may complicate the technical pattern and push more bears to the market.
Supply Levels: $ 150.00, $ 140.00, $ 130.00
Demand Levels: $ 200.00, $ 190.00, $ 180.00