While legacy markets and Bitcoin have rejected from local highs, Ethereum has been holding up well. Since the launch of Uniswap’s UNI token, the price of the leading cryptocurrency has surged around 6-7%.
From the lows set earlier this month, the coin is up in excess of 20%, shocking some commentators who thought this market was on the verge of a bear trend.
Ethereum is primed to move even higher in the days ahead.
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Ethereum Could Soon Move Even Higher After Bounce From Lows
Ethereum is primed to continue its ascent in the days ahead as on-chain statistics favor bulls, blockchain analytics firm Santiment reported on September 17th.
According to their data, there is a divergence forming between ETH’s price action and the daily active address count on the Ethereum network. The last time such a divergence was seen was prior to a strong 20% uptrend in August/Early-September. This is also the first positive divergence since August, suggesting that bulls may soon reassert control over ETH’s price action:
“$ ETH has separated from $ BTC on a bullish Thursday, as our DAA Divergence Model indicates it has room for more growth on a refreshing +7% price surge. On the day, #Ethereum is on pace for 456k active addresses, which would be its highest output since 8/8.”
Chart of ETH's price action over the past few months with analysis of Ethereum's daily active addresses (and its divergence to price) by crypto and blockchain data firm Santiment (@SantimentFeed on Twitter).
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Fundamentals Still Positive for the Coin
ETH’s long-term fundamentals remain in a good state despite the recent price action.
Chris Burniske, a partner at Placeholder Capital, recently commented on Ethereum’s prospects in this market cycle:
“Meanwhile, to the mainstream $ ETH will be the new kid on the block — expect a frenzy to go with that realization. Given $ ETH’s outperformance of $ BTC over its lifetime (chart below again), not to mention smaller network value and strong on-chain economies, I see every reason for $ ETHBTC to surpass ATHs.”
This was echoed by Joseph Todaro of Blocktown Capital.
He said that DeFi will do more to drive Ethereum higher than ICOs last cycle:
“In 2017 ICOs aided in moving ETH beyond $ 100 billion marketcap. In this next cycle, Defi will likely help push ETH to $ 1 trillion marketcap.”
Ethereum may run into short-term concerns, though, with transaction fees hitting notable highs.
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Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com The Key Reason Why Ethereum Could Move Even Higher After 20% Bounce