Ethereum Climbs Back Above $2,900 As S&P Market Rises

The cryptocurrency market has closely been in tandem with the equities market over the years, with the latter influencing the uptrend and downtrend of the former. This correlation even got stronger in 2022. 

In February, ETH correlated with the United States equities like never before, with the correlation index capping at 0.65 over 40 days. On April 29, Ether, once again, exhibited a strong tandem with the S&P 500, with Santiment showing a 3% increase in ETH?

What Does Santiment Say?

Data from the popular analysis site showed that ETH rose 3% in the market, with over a thousand whales acquiring more ether to sustain the bullishness during 4 hours (between 12 pm and 4 pm UTC). Whales transactions hit over $100,000 today. Unsurprisingly, the market behavior correlated with the equities market, which saw a +1.8% pull.

The second-largest virtual currency by market capitalization climbed back above $2.9k in the market. Based on Santiment, the massive purchases suggest that whales took notice of the spike. Hence, their move-in acquiring more ETH. 

ETH whales are one of the dominant factors behind the price action of ETH, as they transacted over 85k ETH on Friday. IntoTheBlock data shows that 70% of the hodlers profited massively, representing one of the highest gains in the market. 

ETH’s correlation with the stock market isn’t new. In late March, the two dipped but rose again post-March. The S&P 500 embarked on a profit-running spree from mid-March, likewise ETH. 

Should This Correlation Be Considered All the Time?

The crypto market is like any other monetary market – the gains or positives are countered by the losses or negatives. That remains an obvious fact. The Crypto market’s relationship with S&P 500 can dictate how the former would perform. However, experts caution the public against paying close attention to this relationship in some scenarios.

Former BitMex CEO Arthur Hayes is one of the experts that raised concerns about the relationship. Meanwhile, the equities market is expected to crash in 2022 following the Fed’s hike announcement to combat the rising inflation. Ultimately, this could have a negative impact on Ethereum. 

But, the RSI suggests an upswing could be possible. Currently, ETH is using the 100-day MA, which puts the support level at $2.9k. With this, an upswing is needed to change the 50-day MA to set the coin for an uptrend. If a bullish run kickstart, ETH could be heading to $3,478, which was rejected twice this year.