{"id":6879,"date":"2023-05-25T14:06:44","date_gmt":"2023-05-25T14:06:44","guid":{"rendered":"https:\/\/www.bitrabo.com\/community\/this-metric-signaled-ethereum-dip-under-1800-in-advance\/"},"modified":"2023-05-25T14:08:26","modified_gmt":"2023-05-25T14:08:26","slug":"this-metric-signaled-ethereum-dip-under-1800-in-advance","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/this-metric-signaled-ethereum-dip-under-1800-in-advance\/","title":{"rendered":"This On-Chain Metric Predicted Ethereum Dip Below $1,800"},"content":{"rendered":"\n<div>\n<p>A recent sharp drop in Ethereum&#8217;s price below the $1,800 level may have been predicted by an on-chain indicator.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Multi-Collateral_Dai_Repaid_Metric_Causes_ETH_Plunge\"><\/span>Multi-Collateral Dai Repaid Metric Causes ETH Plunge<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Data from on-chain analytics firm Santiment shows that during the past day, 43.4 million Dai was repaid using Wrapped ETH (WETH). Multi-Collateral Dai (DAI) is a decentralized stablecoin built on Ethereum and its value is pegged to the US Dollar.<\/p>\n<p>Multi-Collateral DAI is backed by a mix of cryptocurrencies, unlike Single-Collateral Dai (SAI) which was collateralized by a single asset. When Dai is minted, users must deposit their collateral into smart contract vaults. In this context, stablecoin tokens minted using WETH as collateral are significant.<\/p>\n<p>The &#8220;Multi-Collateral DAI created&#8221; indicator measures the total number of stablecoin coins that are being minted using WETH right now. On the other hand, the &#8220;Multi-Collateral DAI repaid&#8221; metric tracks cases where WETH has been returned after issuing tokens have been destroyed.<\/p>\n<p>According to the chart below, large spikes in the Multi-Collateral Dai repaid indicator have preceded either a top or bottom in Ethereum&#8217;s price:<\/p>\n<p><\/p>\n<pre style=\"text-align: center;\">One of the metrics seems to have observed a large value in recent days | Source: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/santimentfeed\/status\/1661483110041792512\/photo\/1\">Santiment on Twitter<\/a><\/pre>\n<p>Two such instances of this trend were observed in the past year. In the first, right after the ETH price crash due to the 3AC bankruptcy, a spike coincided with cryptocurrency&#8217;s bottom formation. In the second instance in February 2021, the spike coincided with the asset forming a local top. The latest spike saw 43.4 million DAI destroyed, the third-largest value the indicator has registered during the past 12 months.<\/p>\n<p>If the trend from the previous spikes holds true, the current Dai WETH repayments may lead to Ethereum observing either a local top or a local bottom. As Ethereum has already rebounded above the $1,800 level, the real effect of this metric is yet to be seen.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Current_ETH_Price\"><\/span>Current ETH Price<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>At the time of writing, Ethereum is trading around $1,800, down 1% in the last week.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" class=\"alignnone size-medium aligncenter\" src=\"https:\/\/www.bitrabo.com\/community\/wp-content\/uploads\/2023\/05\/This-Metric-Signaled-Ethereum-Dip-Under-1800-In-Advance\" alt=\"Ethereum Price Chart\" width=\"1533\" height=\"911\"\/><\/p>\n<pre style=\"text-align: center;\">ETH has already recovered today | Source: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/chart\/qFC1kfFd\/\">ETHUSD on TradingView<\/a><\/pre>\n<p>Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net<\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A recent sharp drop in Ethereum&#8217;s price below the $1,800 level may have been predicted by an on-chain indicator. Multi-Collateral Dai Repaid Metric Causes ETH Plunge Data from on-chain analytics firm Santiment shows that during the past day, 43.4 million Dai was repaid using Wrapped ETH (WETH). Multi-Collateral Dai (DAI) is a decentralized stablecoin built [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6881,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"This On-Chain Metric Predicted Ethereum Dip Below $1,800 - Bitrabo","description":"A recent sharp drop in Ethereum's price below the $1,800 level may have been predicted by an on-chain indicator. Multi-Collateral Dai Repaid Metric Causes ETH P"},"footnotes":""},"categories":[316],"tags":[1011,1010,768,1008,1009],"class_list":["post-6879","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-advance","tag-dip","tag-ethereum","tag-metric","tag-signaled"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/6879","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=6879"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/6879\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/6881"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=6879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=6879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=6879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}