Ethereum has returned beneath $2K mark once again
According to data from CoinMarketCap, Ethereum is back below the $2,000 mark again, down nearly 4% to $1,975 at press time. On-chain analytics platform Saniment suggests that its NVT model predicts a bullish divergence, due to the recent price decline. When prices fall to a new low and an oscillator does not fall, it is called a “bullish divergence”. This condition could indicate that the bears are losing ground and the bulls may soon regain control of the market.
The NVT Ratio (Network Value to Transactions Ratio) is the ratio of market capitalization to volumes transacted. A healthy NVT ratio can be bullish for the price of the crypto asset.
In its recent Santiment Insights report, the on-chain analytics platform notes that “ETH’s 90D MVRV, which measures holders’ medium-term profit/loss, shows that we are almost in the opportunity zone, which has historically seen a local fund being developed with decent R/R.”
However, the ETH number of addresses holding more than 100 coins just reached a six-month high of 43,151 per Glassnode alert, suggesting either an influx of large holders or simply retail holders increasing their supply.
Ethereum “Merge” Updates
Ahead of Ethereum’s much-anticipated migration to proof-of-stake (PoS), cybersecurity organization Cloudflare is set to fully activate and bring Ethereum validating nodes into play in the coming months.
Ethereum developer Tim Beiko indicated over the weekend that the Ropsten testnet might “merge” in early June, precisely on June 8. Two new beacon chains may, however, be launched before then. Other testnets will be merged once the client code quality and testing coverage for the Ropsten merging are adequate, according to Beiko; otherwise, the difficulty bomb may be delayed.
Meanwhile, despite the network’s high transaction costs, crypto venture capital firm Andreessen Horowitz (a16z) said Ethereum’s progress and demand are “unmatched”. The most recent remarks were made in a blog post announcing a16z’s “State of Crypto” report for 2022.
