In a tweet on Wednesday, Santiment Feed reveals that on Tuesday, the Ethereum network set a new record for the number of daily active addresses, reaching 1.06 million, 48% higher than the previous record.
“Ethereum shattered records Tuesday after an incredible surge in address activity broke its All-Time High by a wide margin. 1.06M $ETH addresses made transactions, & the team is still investigating the cause of the +48% increase over the previous record,” Santiment tweeted.
While Santiment says their team is still investigating the cause of such an incredible sudden spike, the surge can be the result of the recent FOMC meeting where FED raised the interest rate by 0.75%.
Meanwhile WuBlockchain on Thursday reports that the Ethereum merge remains the current focus of speculation in the crypto market following the market rally on Wednesday, that saw Ethereum gain more than 15%.
“Coingecko shows that in this round of gains after the Fed announced a 75bps rate hike, the Ethereum merge concept is still the main target of speculation,“ WuBlockchain tweeted.
The highly anticipated Ethereum merge would see the migration of Ethereum to the proof-of-stake (PoS) Beacon chain, leaving Ethereum Classic as the largest programmable proof-of-work (PoW) network.
Notably, the merge promises to bring several benefits to the Ethereum network, including improved throughput and lower fees. It is tentatively scheduled to go live on the Ethereum main net on September 19.
On the other hand, Ethereum Classic (ETC) outperformed Ethereum once again as miners continue to migrate in the wake of the coming merge. On Tuesday, CoinDesk reports that AntPool CEO Leon Lv revealed that the mining pool had invested $10 million to support the development of the Ethereum Classic blockchain with plans to invest more, while Ethereum’s founder Vitalik says mining lovers can join ETC.
Vitalik Buterin says the merge isn’t priced in until it happens
Vitalik Buterin, Ethereum co-founder and developer, doesn’t believe the merge is priced in until it happens. “I basically expect that the merge is going to be kind of not priced in, by which I mean like not even just like market terms but even just kind of like psychological and narrative terms.”
He means the transition to Proof of Stake (PoS) will not be complete by just the merge of Ethereum Mainnet and the Beacon Chain. Ideally, the Surge, Verge, Purge, and Splurge phrases are crucial for the merge.
In market terms, people anticipating a price rally as a result of the upcoming merge in mid-September will have to wait 6-8 months for the price rally to actually kicks in.
A post-merge cleanup fork usually runs for about 6 to 8 months. Ethereum developers will most likely open withdrawals after a post-cleanup update. New Ether issue will continue only after the cleanup phase.
The Ethereum (ETH) will become deflationary crypto after the merge, with the supply reducing as a result of the EIP-1559 proposing to burn ETH instead of giving it to miners.
The Ethereum (ETH) prices could rise before the merge, dump on merge, and again as Vitalik Buterin said at the Ethereum Community Conference, the value of Ethereum will rise under the right market conditions.
Ethereum Price Analysis
While the revolutionary Canadian programmer believes the merge is yet to be priced in, it is worth noting that it has driven a lot of market speculation in recent weeks, with strong price performances from Ethereum, Ethereum Classic, and Staked Ethereum.
ETH was exchanging hands at $1472 at the time of writing. After Ethereum witnessed a sharp fall, it tried to recover slowly but bearish pressure was still strong in the market.
Overhead resistance for the altcoin was at $1,542 and a current fall in price will drag ETH to $1,260.
For bearish thesis to be negated Ethereum has to trade above the $1,600 price mark for longer than a few trading sessions. If buying strength doesn’t display consistency then Ethereum can fall to $1,100 in just a matter of time.
The volume of ETH traded in the last session rose which indicated that buying strength struggled to move north on the chart.
The Relative Strength Index was below the half-line but over the last trading sessions, there was an uptick in the indicator.
This meant that buying strength was recovering on the four hour chart.
Despite the recovery, the price of the altcoin was below the 20-SMA line, a reading below the 20-SMA line points towards sellers driving the price momentum in the market.
The fall in price can be directly tied to a sell signal. The Moving Average Convergence Divergence depicts price momentum and reversals in the same.
MACD underwent a bearish crossover and flashed red signal bars which are tied to sell signal for the coin.
Directional Movement Index presents price direction and where the coin is headed next. DMI was negative as the -DI line was above the +DI line.
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