ETH On-Chain Analysis: Ethereum Active Addresses Divergence Remains in Bullish Area Amid Price Drop

Ethereum (ETH) price rallied almost 8% from its support level near $2500 in the last 2 days. While continuing its volatile price movement in the last 24-hour, the current price is still 4% up near $2650. Although the price action is flat, Santiment data suggest a bullish outlook in the future.

According to on-chain metrics firm Santiment, ETH active addresses divergence has remained in the bullish divergence area despite the decrease in prices. Moreover, there is a bullish divergence between Ethereum’s Daily Active Addresses (DAA) and price movement, suggesting the possibility of a price uptrend.

ETH Daily Active Addresses Paint Positive Outlook

Santiment announces the Ethereum daily active address data in a tweet on March 16, helping investors to have an outlook.

“Ethereum 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,” Santiment said, adding positive divergence between DAA and price in 2022.

🐂 #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. 👍 https://t.co/8Z0VU2hsUv pic.twitter.com/yxGYrJIm50

— Santiment (@santimentfeed) March 16, 2022

Santiment also reported plummeting whale transactions seen in a year, which isn’t necessarily bearish. However, it simply suggests that the large players are waiting for further developments in war and inflation.

Recently, Ethereum builder ConsenSys announces its plan to convert $450 million to Ethereum that it recently raised in a Series D funding round at a $7 billion valuation. Investors including ParaFi Capital, Temasek, SoftBank Vision Fund 2, and Microsoft has shown interest in ConsenSys’ development and tooling of the Ethereum ecosystem.

Joe Lubin, Ethereum co-founder and founder of ConsenSys, suggesting his commitment to Ethereum, 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.”

Ethereum’s Leadership in the NFT Space

Ethereum is the most used blockchain in NFTs and DeFi space, with nearly 80% market share in the NFT marketplace. Thus, despite the decrease in ETH price, the daily active address has remained flat.

In Februay, crypto analytics firm Nansen launched six indexes for monitoring the NFT market. A recent data indicates that Ethereum NFT sales are in inverse correlation with the crypto market.