Santiment, a renowned blockchain analytics firm, took to Twitter to highlight an intriguing observation regarding Ethereum’s network growth. According to their tweet, this growth has steadily increased, albeit with minimal fanfare.
Notably, a surge in the creation of new addresses has caught their attention, which they consider to be a promising sign of future market capitalization expansion.
This bullish divergence has piqued the interest of market observers who are closely monitoring Ethereum’s progress as it hovers just below the $1,900 mark.
Interestingly, Ethereum’s price movement has been closely tied to that of Bitcoin in recent times. However, recent notable transactions suggest that Ethereum may soon break away from this correlation and establish its independent trajectory.
Whale Alert, a platform that tracks large cryptocurrency transactions, reported a substantial transfer of 25,264 ETH, valued at approximately $48 million. The funds were moved from an undisclosed wallet to Coinbase, a leading cryptocurrency exchange.
While such significant transfers can sometimes signal an impending uptrend, they can also introduce short-term volatility into the market. These movements often serve as indicators of possible changes in price sentiment.
It is worth noting that alongside the aforementioned transfer, another substantial transaction involving 30,000 ETH was also recorded. This sizable amount was transferred from an anonymous wallet, adding further intrigue to the unfolding Ethereum landscape.
Ethereum Price Analysis
According to the latest data from CoinMarketcap, ETH is currently trading at $1,853.13, with a decline in both daily and weekly charts. As per the data, in 24 hours, the coin decreased by 3%, while in the seven-day chart, there was a 2.70% decline.
Due to various factors, ETH’s price rally was halted after reaching the $1,970 level on July 3. These include the possibility of more interest rate hikes and stricter regulations in the cryptocurrency market.
The Ethereum network also experienced withdrawals from its smart contract applications, which affected the June rally. Investors are now questioning whether the demand for a Bitcoin exchange-traded fund has diminished, potentially leading to a correction in ETH’s price.
Regulatory developments, such as the European Union’s Data Act and Binance Australia’s derivatives business investigation, have contributed to the challenging environment.
The Ethereum network’s total value locked (TVL) has decreased, indicating a decline in investor interest or a shift to layer-2 alternatives.
Professional traders have increased their leveraged long positions in Ether futures, but other indicators suggest a balanced demand for call-and-put options. Overall, these factors present significant obstacles for Ethereum bulls in breaking the $1,970 resistance level.
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