Top two cryptocurrencies by market value Bitcoin (BTC) and Ethereum (ETH)rallied by 70% and 56% this year, putting a significant margin on competing risky assets and overshadowing them.
Besides Ethereum It has dropped significantly against Bitcoin.
Ethereum, which has risen above $ 2,000 in the past weeks, is trading at $ 1850 before the FED decision.
ETHindicating that some data in CryptoQuant analyst MACD warned investors.
Noting that errors in Ethereum transactions are on the rise, the analyst said that when transaction failures rise above 200,000, it indicates the market is overheating and often sees a price correction.
“There are two reasons why I am waiting for a fix in Ethereum.
1-Ethereum Transaction Failed: In the past, when Ethereum’s transaction failures went above 200,000, it would indicate that the market was overheating and would often see a price correction. This number has been reached.
2- Ethereum Average Gas Limit: The Ethereum average gas limit allows users to set a maximum gas limit to prevent transaction fees from getting too high. If the gas limit is set too low, the transaction may not complete and fail, so higher fees are paid to avoid damage to gas costs.
In this context, the average gas limit has increased recently.
As a result, when we look at these two data, it seems like a short-term correction may come. “
However, the analyst BTC Looking at the MVRV cycle indicator, he said, there is still room for further increases.
When the two signals signaling a correction are evaluated together with the BTC MVRV cycle indicator, the analyst “Looking at the BTC MVRV cycle indicator, it seems that there is still room for further gains and it would be a good idea to use the corrective market to accumulate. “ said.
*Not investment advice.
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