Some fundamentals Ethereum talk about undervalued coins on the market. While quality parameters [mean and median transaction costs] affect the price of ETH than quantitative [number of active addresses, transactions, the price of gas]. It is against the law Metcalfe, says the founder of hedge Fund Ventures Pugilist Christopher Brookins.
My article via @coindesk highlighting some of the fundamental metrics driving the #Ethereum and undervaluation. #TAAR #AAAT https://t.co/bZ3AbVpY2O@APompliano @twobitidiot @dan_pantera @_CryptoCurator @AriDavidPaul @Dascryptoforyou @Techemist
— Christopher Brookins (@cb_quant_klok) 16 Feb 2019
Brookins found that the indicators that measure the relationship between qualitative and quantitative network characteristics positively correlate with the price of ETH. One such indicator is the ratio between the amount of onchain transactions and active addresses (TAAR).
According to the founder Pugilist Ventures, if the network of bitcoin TAAR keeps track of the balance, in the case of Ethereum, it can indicate the direction of the price. If TAAR will remain over the mark in 1000, it will confirm the bottom of the ETH in the neighborhood of $100. In the case of test marks 500, 300 and 100, investors should not expect anything good, he said.
Data Coinmetrics
Another indicator — the ratio of the number of active addresses and the average daily value of transactions (AAAT). The correlation between price and AAAT — negative, and now equals -0,09. If the number of active addresses is growing faster than the average cost of the transaction of quotes should theoretically decline.
On the logarithmic graph shows that historically, the price of ETH under the curve AAAT, and its crossing was talking about an upward trend. However, in December 2018, the price of coins again crossed AAAT curve in the opposite direction, which, according to brookins, indicates possible pressure on the quotes if quality indicators do not increase.
Data Coinmetrics
It is noteworthy that in December 2015 TAAR and AAAT acted to each other like magnets of the same pole. Falling TAAR and growing AAAT crossed and pushed in opposite directions. Then began the biennial ETH rally.
A similar situation exists now: TAAR and AAAT are approaching each other. Brookins believes that, if the pattern persists, it will happen in the fourth quarter of 2019.
Data Coinmetrics
After reaching a peak value of Ethereum has fallen by more than 90%, the volume of transactions in the network showed the same sharp drop. The number of active addresses has been reduced by more than 70%, and the number of transactions by 52%.
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