Mastering Ethereum analytics (part 3) | by MicroBioscopicData (by Alexandros Athanasopoulos) | Jul, 2025



Exploring Advanced Technical Analysis with Python: A Deep Dive into Crypto Investing

Recapping Our Journey So Far

In the sooner parts of our series, we took a more in-depth take a look at the fundamentals of Ethereum, unraveling its whitepaper and development journey. We also delved into crucial public metrics, reminiscent of market cap, circulating supply, and trading volume. Our exploration didn’t stop there—we dove into two pivotal financial metrics: returns and investment multiples, using the facility of Python to perform technical evaluation. On top of that, we assessed the reward-to-risk balance by examining the mean return and volatility over multiple years.



Taking the Next Step in Crypto Analysis

Welcome to the third installment of our series! Here, we mix together key ideas like reward, risk, and the efficiency of technical strategies. Our highlight is on objectively compare Ethereum with other leading cryptocurrencies using essential financial metrics. To be certain our comparisons are fair, we annualize every day or monthly returns and risks—compounding returns and applying the square root of time for volatility. This is where the Compound Annual Growth Rate (CAGR) comes into play, offering a smooth measure of average yearly returns, perfect for evaluating long-term success.



Evaluating Risk-Adjusted Returns

To measure risk-adjusted returns, we dive into two significant ratios: the Sharpe Ratio and the Sortino Ratio. The Sharpe Ratio takes under consideration total volatility, while the Sortino Ratio zeroes in on downside risk, making it particularly useful for strategies focused on minimizing losses while maximizing gains. Finally, we introduce the Maximum Drawdown (MDD) metric, which highlights the most important drop from peak to trough in a portfolio, giving us further insight into the risks involved.

See also  June 2025 Beginner’s Guide: How to Find Best Ethereum Meme Coins & Presales Before Everyone Else

Stay tuned as we proceed to unravel the intricacies of crypto investing, providing you with invaluable insights and techniques to navigate the dynamic world of cryptocurrencies. Let’s keep pushing the boundaries of what is possible with Python and technical evaluation!

Image Credit: medium.datadriveninvestor.com

Hot Topics

Related Articles

bitcoin
Bitcoin (BTC) $ 117,413.46
ethereum
Ethereum (ETH) $ 3,746.87
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 783.87
xrp
XRP (XRP) $ 3.16
cardano
Cardano (ADA) $ 0.819646
usd-coin
USDC (USDC) $ 1.00
matic-network
Polygon (MATIC) $ 0.233684
binance-usd
BUSD (BUSD) $ 0.998669
dogecoin
Dogecoin (DOGE) $ 0.237735
okb
OKB (OKB) $ 48.05
polkadot
Polkadot (DOT) $ 4.10
shiba-inu
Shiba Inu (SHIB) $ 0.000014
tron
TRON (TRX) $ 0.319098
uniswap
Uniswap (UNI) $ 10.43
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 117,443.47
dai
Dai (DAI) $ 1.00
litecoin
Litecoin (LTC) $ 113.37
staked-ether
Lido Staked Ether (STETH) $ 3,740.41
solana
Solana (SOL) $ 186.68
avalanche-2
Avalanche (AVAX) $ 24.17
chainlink
Chainlink (LINK) $ 18.25
cosmos
Cosmos Hub (ATOM) $ 4.68
the-open-network
Toncoin (TON) $ 3.31
ethereum-classic
Ethereum Classic (ETC) $ 23.05
leo-token
LEO Token (LEO) $ 8.98
filecoin
Filecoin (FIL) $ 2.64
bitcoin-cash
Bitcoin Cash (BCH) $ 553.77
monero
Monero (XMR) $ 327.49