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    Ethereum Approaching A Bullish Trend?

    TheMorningCrypto Desk
    TheMorningCrypto Desk
    Published on November 7, 2022 7:37 PM

    Updated on January 9, 2023 12:50 PM

    Ever since the Merge went live, investors have been keeping a close eye on Ethereum’s price performance. Will ETH be able to sustain the recent price hikes?
    Ethereum Approaching A Bullish Trend?
    Source: ethereum.org

    Ever since the Merge, investors have been keeping a close eye on Ethereum’s price performance. Ever since the Merge went live successfully, the price hike investors were expecting did not happen. However, the last month for Ethereum(ETH) saw a significant price hike. At press time, ETH is trading at $1,589.20, a 19.48% price increase in a month. 

    Will Ethereum continue with this trend and make new highs?

    ETH’s crazy performance 

    After the Merge went live on September 15, data shows the devs were unhappy with the upgrade. The development activity fell from 66.50 to 51.86 within a week. But the devs are back on track. Since October 18, the same has been increasing at a steady rate. The development activity on the Ethereum network went from 23.057 to 61.92 in the last few weeks. This shows the devs are gaining back confidence in the ETH blockchain. 

    The aim of Vitalik Buterin, the co-founder of Ethereum, of making ETH a deflationary asset with time - has been successful to a point.

    The supply of ETH was expected to shrink after the Merge. According to Santiment’s data, the total supply of ETH has been steadily declining after the Merge went live. And the current total supply of ETH in circulation is 120.74 million, a decline of 0.06 million tokens in less than a month.

    Correlating the decline in the total supply of ETH with its price trend, the decreasing supply contributed to increasing asset prices.

    The top crypto exchanges witnessed a significant increase in ETH holdings. In the last 7-days, ETH holdings on Coinbase increased by over 6.8K and 27.4K in Binance. But Ethereum’s exchange reserves have been declining in the last 7-days. And as this value continues to decrease, it indicates lower selling pressure for the crypto. 

     

    Wait, this is not the end

    How could it be all good for cryptos in such evil times?

    Ethereum has been witnessing a significant decline in the number of active addresses' 30-day performance. In a month, the number went down from 8.08 million to 5.87 million. And this means that different addresses on the Ethereum blockchain participate less in a transaction on a given day. 

    The momentum indicator Relative Strength Index (RSI) indicates a neutral condition for Ethereum. 

    Ethereum's analysis indicates a "not to worry situation for investors." But where is Ethereum headed next? Can we expect the price uptrend for a long-time now?