The ratio of growth in the number of active addresses on the Ethereum blockchain relative to its price dynamics has reached its highest level since October 16. According to Santiment analysts, this sets the stage for a rally in the second-largest cryptocurrency.
Such a divergence was observed about 3.5 weeks ago. This could be a sign of gradual transfer of profits from Bitcoin to Ethereum and other altcoins, the analysts write.
1) 📊 #Ethereum‘s daily active addresses interacting on its network are trending toward the most bullish day since Oct. 16 if numbers stay at this trajectory for the final 5 hours before daily close. This could be an indication of $BTC profits gradually moving over to $ETH and pic.twitter.com/GbZFVDJgFD
— Santiment (@santimentfeed) November 6, 2020
Santiment says the market is currently driven by the [simple_tooltip content=’FOMO — fear of missing out’]FOMO effect[/simple_tooltip]. The crowd hopes that Bitcoin’s dominance will persist. They emphasised that the market often behaves contrary to the majority’s expectations.
2) other #altcoins as the FOMO crowd presumes that #Bitcoin will continue its dominance. Remember that markets tend to ebb and flow based on the least expected outcomes by the crowd. Sanbase PRO users can freely access this DAA vs. Price Divergence model. https://t.co/FzXrhZj7EE
— Santiment (@santimentfeed) November 6, 2020
According to CoinGecko, Bitcoin and Ethereum over the last 24 hours and the week show comparable growth rates. Since September 1, the leading cryptocurrency has risen by 45%, while ETH by 26.25%.
Many market participants believe that Ethereum’s price could rise ahead of the upcoming December 1 launch of ETH2 Phase Zero.
The balance of the deposit contract, which allows transferring ETH from the existing network to ETH2, confirming the validators’ authority, stands at 49,377 ETH (~$21.97 million at the time of writing). The launch condition for Ethereum 2.0’s mainnet is the participation of 16,384 validators, who by that time must deposit a total of 524,288 ETH.
Earlier, Ethereum co-founder Vitalik Buterin sent 3200 ETH to the Ethereum 2.0 deposit contract.
What is Ethereum 2.0?
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