According to recent analytics data, Ethereum is facing a bullish divergence and may soon see a price uptick
On-chain data provider Santiment posted a tweet showing why the second-largest cryptocurrency, Ethereum, may see its price increase soon.
“Upward trend and bullish divergence”
According to a recent tweet from Santiment, over the past month, the number of unique addresses that have been interacting on the Ethereum chain has demonstrated mild growth, while the ETH price has gone down (reaching a low of $2,879 on April 27).
The Santiment team points out that the utility of Ethereum is increasing, which provides strong preconditions for an ETH price surge.
Ethereum traders in profit despite price drop
As reported by another data provider, IntoTheBlock, the other day, almost 70% of Ethereum addresses are holding the asset in profit.
Ethereum’s profitability remains high, despite the price falling 40% from the all-time high of $4,891 hit by ETH on November 16.
At the time of this writing, ETH is sitting at $2,929, showing a rise of 1.3% but still trading below the important psychological level of $3,000.
Ethereum merge will take place this summer
Ethereum’s major and most anticipated update, “Merge” (also known as Ethereum 2.0) has been slated for this summer by ETH developers, but the exact date is yet to be announced. been confirmed.
This will include a shift of Ethereum from the energy-consuming proof-of-work verification mechanism to the proof-of-stake one, which is believed to be more environmentally friendly.
Many are optimistic about this upgrade, including billionaire and investor Mark Cuban, owner of the Dallas Mavericks team. Along with becoming a greener crypto, this upgrade will reduce the circulating supply of the coin as far less Ether will be minted via PoS.
