This Divergence Shows Bullish Sign For Ethereum

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The number of new Ethereum addresses spiked amid the price decline.

There has been a growing interest in Ethereum since the leading blockchain network transitioned from a Proof-of-Work (PoW) algorithm to Proof-of-Stake (PoS). 

New investors indicate interest in the asset class, with blockchain data from IntoTheBlock showing a spike in the number of new Ethereum addresses created daily. 

Ali Martinez, a popular cryptocurrency analyst, shared the development today on Twitter, saying:

“The number of new $ETH addresses created per day is actually increasing. I was able to confirm this on @intotheblock,” Martinez said.

ETH Price Down Despite Growing Investors’ Interest

According to data from IntoTheBlock, the number of new Ethereum addresses created daily is currently around 1,640. The development suggests a growing adoption of Ethereum while the price of the cryptocurrency continues its downward movement.

ETH has been on a downward slide since Ethereum launched the Merge upgrade, where the network switched from its previous PoW consensus algorithm to the energy-friendly PoS.

Since Ethereum’s PoS transition, the price of the project’s native cryptocurrency has been down 15.6%. At the time of writing this line, Ethereum is currently changing hands at $1,323, down 0.2% in the last 24 hours.

Martinez said the divergence, Ethereum price going down, while the growing number of addresses created on the network indicates a bullish signal for the ETH.

“This divergence (price going down while the network grows) is a bullish sign for ETH,” Martinez noted.

Sorry about that fam!

It seems there was a glitch in @glassnode. The # of new $ETH addresses created per day is actually increasing. I was able to confirm this on @intotheblock!

This divergence (price going down while the network gorws) is actually a bullish sign for #ETH. https://t.co/chzIroDgPn pic.twitter.com/RkiFhX7yM8

— Ali (@ali_charts) September 28, 2022

It is noteworthy that a couple of new developments have been reported for Ethereum since the Merge upgrade went live. Top exchange Gemini launched a staking service for the second-largest cryptocurrency. However, the initiative has not stopped Ethereum investors from selling huge volumes of the asset class.

TheCryptoBasic reported that a whopping 250,000 Ethereum coins were sent to Binance in one single transaction. At the same time, another 20,000 ETH were transferred to an address on the FTX exchange a few days before.

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