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Santiment on-chain data vendor has published a tweet in which it shows why the second largest cryptocurrency, Ethereum, may see its price go up soon.
"Upward trend and bullish divergence"
According to a recent tweet from Santiment, over the past month, the number of unique addresses that have been interacting on the Ethereum chain has demonstrated mild growth, while the ETH price has gone down (reaching a low of $2,879 on April 27).
The Santiment team stresses that Ethereum's utility is increasing, which provides strong prerequisites for an ETH price surge.
? #Ethereum's amount of unique addresses interacting on the network has mildly improved as prices have declined. This has created an upward trend and a #bullish divergence. Utility growing while prices drop is a strong case for prices turning positive. ? https://t.co/cOxFjkx009 pic.twitter.com/29lFkitkk8— Santiment (@santimentfeed) April 27, 2022
Ethereum traders in profit despite price drop
As reported by another data provider, IntoTheBlock, the other day, almost 70% of Ethereum addresses are holding the asset in profit.
The profitability of Ethereum remains high, despite the 40% decline of the price compared to the historic peak of $4,891 reached by ETH on Nov. 16.
At the time of this writing, ETH is sitting at $2,929, showing a rise of 1.3% but still trading below the important psychological level of $3,000.
Ethereum's "Merge" to take place this summer
Ethereum's major and most-expected upgrade, "Merge" (also known as Ethereum 2.0) has been scheduled for this summer by ETH developers, but the exact date has not been confirmed yet.
This will include a shift of Ethereum from the energy-consuming proof-of-work verification mechanism to the proof-of-stake one, which is believed to be more environmentally friendly.
Many are bullish on this upgrade, including billionaire and investor Mark Cuban, owner of the Dallas Mavericks team. Apart from becoming a greener crypto, this upgrade will reduce the circulating supply of the coin as a lot fewer Ethers will be minted via PoS.