- The correlation between Ethereum daily active addresses (DAA) and price suggests a bullish divergence for ETH.
- However, ETH whales are waiting on the sidelines observing the scenario around war and inflation before getting involved in the market.
Amid today’s broader market recovery, the world’s second-largest cryptocurrency Ethereum (ETH) is showing some positive signs. As of press time, Ether (ETH) is trading 5.48 percent up at a price of $2,677 and a market cap of $321 billion.
On-chain data provider Santiment reports that the daily active addresses (DAA) for Ethereum and its price action are showing a bullish divergence as of now. Thus, there could be a strong possibility of a price trend that can take ETH to $3,000 and beyond. In a tweet earlier today, Santiment reported:
Ethereum’s utility has remained steady these past 4 months, despite prices being cut by -35% over this time. With the amount of unique addresses interacting on the $ETH network staying flat, there is a #bullish divergence between DAA and price.
Courtesy: Santiment
Furthermore, the Ethereum blockchain seems to overcome one of its biggest worries of gas fees. Its price action has also been showing a strong correlation to the S&P 500, higher than Bitcoin. Data provider Santiment reported:
Ethereum is bouncing rapidly around the $2,560 level currently. In addition to the extremely tight #SP500 correlation it has right now (even more than Bitcoin), it’s also seeing 8-month low fees right now. $ETH last had fees below $4.10 in mid-July.
The low gas fee is likely to encourage greater DeFi and NFT activity on the Ethereum blockchain.
Whale transactions for Ethereum (ETH) on pause
After strong accumulation last year, whales seem to have taken a pause for a while. With the geopolitical uncertainty and inflation rates soaring, whales aren’t keen to make fresh ETH purchases as of now. This is specifically true for Bitcoin, Ethereum, and Tether.
On-chain data provider Santiment reports that the combined whale transactions for these crypto cryptocurrencies have dropped to the lowest in one year. It further adds:
Bitcoin, Ethereum, & Tether have seen plummeting whale transactions, the lowest amount of combined $100k+ valued transactions in a year. This isn’t necessarily #bearish, but reflective of large players awaiting further #war & #inflation developments.
However, investors’ confidence in the Ethereum ecosystem continues to remain strong. Ethereum-based blockchain firm ConsenSys secured $450 million in a Series D funding round on Tuesday, March 15, taking its valuations to $7 billion.
The announcement notes that ConsenSys shall be converting these funds into ETH to “rebalance the ratio of ETH to USD-equivalents in line with ConsenSys’ treasury strategy”. ConsenSys CEO Joseph Lubin said:
This round takes in digital assets as well as fiat and converts immediately to ETH. Next round will be our ‘Series ETH’ where we will assist investors in getting fully crypto native to contribute ETH as a symbol of and commitment to the ongoing paradigm shift.
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