Santiment, a cryptocurrency data analytics platform, has highlighted a significant development in Ethereum’s journey to regain its former glory. The world’s second-largest cryptocurrency by market cap, Ethereum (ETH), recently surged past the $1,800 mark, and the catalyst behind this surge is an impressive surge in new addresses being created, unseen since October 7th.
The rise in new Ethereum addresses reflects a growing interest in the network, with users eager to get in on the action. But that’s not the only positive sign for ETH. The exchange supplies of ETH are also dwindling, which is an encouraging sign for investors. If this trend continues, there’s strong justification for ETH to cross the $2,000 threshold once again.
As of the latest data from CoinMarketCap, ETH is currently trading at $1,839.17, with a 24-hour trading volume of $11 billion, representing a remarkable 70% increase in trading activity. Over the last 24 hours, ETH has witnessed a 2.08% price increase and nearly 3% gains in the weekly chart. This price momentum is indicative of the renewed interest and enthusiasm surrounding ETH.
However, amidst the ETH surge, a recent transaction by Ethereum’s co-founder, Vitalik Buterin, has raised some eyebrows and concerns within the cryptocurrency community. Buterin transferred 100 ETH to Coinbase, which attracted attention due to its significance.
At the time of the transfer, the transaction was worth around $181,000. While this may seem notable, Buterin has previously addressed similar concerns. He clarified that he had not sold any ETH since at least 2018 and certainly not for personal or business gain. Instead, Buterin primarily donates his ETH holdings to charity, non-profit organizations, and various projects.
Market Sentiment Shift: Ethereum vs. Bitcoin
Analysts at K33 Research have also contributed their insights into ETH’s recent developments. One of the key takeaways is a significant shift in market sentiment, as Ethereum futures premiums on the Chicago Mercantile Exchange (CME) have traded at par with Bitcoin for the first time since August.
This shift indicates a more optimistic view in derivative markets following Bitcoin’s recent price surge. According to K33 Research Senior Analyst Vetle Lunde and Vice President Anders Helseth, “The bearish trend on ETH has disappeared.”
The analysts suggest that investors are now less inclined to hedge their Bitcoin exposure with Ethereum, particularly as the ETHBTC rate drops to its lowest point since July 2022. This trend may pave the way for Ethereum to regain strength compared to Bitcoin. It is particularly noteworthy since Ethereum’s ratio had dropped to 0.05.
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