Ethereum FTW: ETH Is Building On-Chain Strength, Willy Woo Says

Ethereum is one of the stars that are shining these days in the crypto space. At the moment of writing this article, ETH is trading in the green, and the coin is priced above $4,600.

Now, it’s been just revealed that the popular on-chain analyst Willy Woo said that an under-the-radar metric suggests that ETH is gearing up for an impressive rise.

He recently posted on Twitter that Ethereum’s supply shock fundamentals have yet to show up on the second-largest crypto’s price chart.

While BTC is building up strength for ATH escape velocity, ETH is quietly building even stronger on-chain fundamentals not yet reflected in price. pic.twitter.com/V8Irs8z7Qb

— Willy Woo (@woonomic) November 2, 2021

It’s also important to note the fact that supply shock is a metric that forecasts a digital asset’s price by analyzing how many coins are in the hands of people with a history of selling versus those that don’t.

Here’s what he said more about the path of Ethereum.

“At first glance you can see the Supply Shock model tracks price quite closely. A closer look shows Supply Shock LEADS price. This makes sense as we are tracking the intent of investors BEFORE their action to buy or sell.”

He continued in the notes and said the following as well:

“For example if a long-term investor that historically accumulates moves enough coins to another entity (usually it’s to an exchange) all coins held by that investor become re-classified as liquid or highly liquid as the intent of the investor is now considered to have changed.”

Woo also debated on Twitter that Bitcoin is in competition with gold as a hedge against inflation.

1) Valuation of the banking sector: $7.3T

2) Valuation of inflation hedges (store of value assets): approx $500T

DeFi is competing for (1). Bitcoin is competing for (2).

— Willy Woo (@woonomic) November 2, 2021

Stay tuned for more relevant news and keep your eyes on the crypto market.