Ethereum Price More Influenced By Off-Chain Markets Than Bitcoin, Data May Suggest

Glassnode data could imply Ethereum price dynamics are more influenced by derivatives and other off-chain markets compared to ￰0￱ Data Shows Divergence In Spot Activity For Bitcoin & Ethereum In a new post on X, on-chain analytics firm Glassnode has talked about how the Cost Basis Distribution (CBD) has diverged between Bitcoin and Ethereum ￰1￱ CBD refers to an indicator that tells us about the amount of a given asset that addresses or investors on the network last purchased at each of the price levels visited by the cryptocurrency in its ￰2￱ metric is useful because investors put special emphasis on their break-even level and tend to make some kind of move when a retest of it ￰3￱ more amount of the asset that the holders purchased at a particular level, the stronger is their reaction to a retest.

Now, first, here is a chart that shows the trend in the CBD for Bitcoin over the last few months: As displayed in the above graph, the Bitcoin CBD acquired a large “air gap” when Bitcoin saw its explosive rally back in ￰4￱ happened because BTC moved through price levels too fast for buying and selling to occur at them, so very few coins were able to receive a cost basis at ￰5￱ BTC consolidated after the rally cooling off, levels started being filled up with ￰6￱ same has followed during the latest phase of decline and now, the previous air gap has ￰7￱ shows that demand for spot trading has maintained for the ￰8￱ Bitcoin has seen this trend, the CBD has behaved differently for the second largest asset in the sector, ￰9￱ the chart, it’s apparent that Ethereum’s rallies have also created air gaps, but unlike Bitcoin, its phases of slowdown haven’t resulted in any levels filling up to a notable degree.

“This suggests ETH price dynamics may be more influenced by off-chain markets such as derivatives,” notes Glassnode. Historically, price action built on products like derivatives has often proven to be more ￰10￱ that Ethereum is currently not observing any high levels of spot buying, it only remains to be seen what the fate of its bull run would ￰11￱ some other news, Bitcoin has been trading near an important on-chain cost basis level after the recent price decline, as CryptoQuant author Maartunn has pointed out in an X ￰12￱ level in question is the average cost basis of the short-term holders , investors who purchased their Bitcoin within the past 155 ￰13￱ the past, losing the level often resulted in short-term shifts to bearish ￰14￱ Price Ethereum has been on the way down recently with its price falling to $4,270 after a 6% weekly pullback.