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HomeCrypto NewsMarketThis Divergence Shows Bullish Sign For Ethereum

This Divergence Shows Bullish Sign For Ethereum

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The number of new Ethereum addresses spiked amid the price decline.

There has been a growing interest in Ethereum since the leading blockchain network transitioned from a Proof-of-Work (PoW) algorithm to Proof-of-Stake (PoS). 

New investors indicate interest in the asset class, with blockchain data from IntoTheBlock showing a spike in the number of new Ethereum addresses created daily. 

Ali Martinez, a popular cryptocurrency analyst, shared the development today on Twitter, saying:

“The number of new $ETH addresses created per day is actually increasing. I was able to confirm this on @intotheblock,” Martinez said.

ETH Price Down Despite Growing Investors’ Interest

According to data from IntoTheBlock, the number of new Ethereum addresses created daily is currently around 1,640. The development suggests a growing adoption of Ethereum while the price of the cryptocurrency continues its downward movement.

ETH has been on a downward slide since Ethereum launched the Merge upgrade, where the network switched from its previous PoW consensus algorithm to the energy-friendly PoS.

Since Ethereum’s PoS transition, the price of the project’s native cryptocurrency has been down 15.6%. At the time of writing this line, Ethereum is currently changing hands at $1,323, down 0.2% in the last 24 hours.

Martinez said the divergence, Ethereum price going down, while the growing number of addresses created on the network indicates a bullish signal for the ETH.

“This divergence (price going down while the network grows) is a bullish sign for ETH,” Martinez noted.

It is noteworthy that a couple of new developments have been reported for Ethereum since the Merge upgrade went live. Top exchange Gemini launched a staking service for the second-largest cryptocurrency. However, the initiative has not stopped Ethereum investors from selling huge volumes of the asset class.

TheCryptoBasic reported that a whopping 250,000 Ethereum coins were sent to Binance in one single transaction. At the same time, another 20,000 ETH were transferred to an address on the FTX exchange a few days before.

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Ammara Mubin is a cryptocurrency reporter and trader with vast experience in the industry. Mubin has written several news stories related to the crypto industry, including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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