- The price of Ethereum has recovered while its on-chain data shows a bullish momentum. The number of active Ethereum addresses shows an increase.
- Number of ETH whale addresses have returned to accumulate again in the last 5 days.
After weeks in the red, major cryptocurrencies begin to see a recovery. The negative impact by the uncertainty of the COVID-19 pandemic is still present increasing the volatility of the market, as Chainalysis stated. However, at the time of publication, the top-10 cryptocurrencies by market cap are giving bullish signals to their holders.
At the time of publication, Bitcoin and Ethereum are the most profitable cryptocurrencies of the top 10 in recent hours. BTC stands at $6,753 with a 5.57% gain in the last 24 hours. Ethereum (ETH) is closely following, having gained 4.97% in the last 24 hours and trading at $140. In addition, the ETH shows a gain of 24.47% in the last 7 days.
Bullish signals for ETH holders
Along with ETH’s positive performance in recent days, its on chain metrics are showing a bullish momentum. According to the analysis firm Santiment, Ethereum is currently on an upward trajectory. On March 11th ETH showed a drop of around 58% in one day. At that time, ETH went from $194 to $109. As a consequence, the DeFi market experienced a crisis that has questioned its sustainability.
However, Santiment claims that this decline also had a positive side. With regard to the transfer of funds, the Ethereum network recorded a total of 13.1 million ETH (406 million dollars) on 11 March, the day of the crash. According to Santiment, this amount represents “the largest transaction volume since December 2018”.
In addition, Santiment also revealed that the number of daily active addresses increased from about 290,000 addresses to 390,000.
Santiment also adds that the number of transactions still occurring under the current state of uncertainty in the market is positive. The number of active addresses and the increase in network activity, Santiment says, are the reason why Ethereum presents bullish indicators:
As we can see, there has been an impressive rise over the past week and a half with a large increase in transactions taking place on the ETH network, and daily active addresses skyrocketed to approximately 395,000 DAA on Saturday, March 21st. (…) approaching 400,000 is a promising development for Ethereum‘s mid/ long-term prospects.
The Santiment report states that the drop in Ethereum’s price has caused the whales to re-accumulate ETH. According to the research company, the whales have collected about 150,000 ETHs in 5 days since 12 March. Santiment’s data show that there is indecision among the whales, some have sold some of their funds, others remain on hold. However, the accumulation of ETH funds in the retail sector is increasing rapidly. Another bullish signal is the increasing number of addresses holding between 0.1 and 1ETH.
These indicators are positive for Ethereum, but the research company still advises caution. In the last few days, an amount of 121,495 ETH (about 14,200,000 dollars) has been deposited on the exchange Bitfinex and could be dumped on the market. As long as the COVID-19 emergency lasts, it is difficult to predict the future development of ETH.