According to the latest on-chain data shared by Santiment, Ethereum is recovering after a 10% increase in the past 48 hours. The blockchain analytics firm has stated that it is in a trend indicating that ETH is an upward expansion area.
The latest uptrend seen in ETH coincides with the rise of Bitcoin as the US dollar continues to decline. The Dollar Index apparently determines the direction of all assets; because the equivalent of these markets is in foreign currency.
Blockchain Data Firm Santiment: Ethereum Will Round Up
Blockchain analytics firm Santiment believes that Ethereum is poised to go up further due to two on-chain trends.
Non-top 100 exchanges addresses (Ethereum whales) have increased their assets by 8.2% cumulatively over the past five weeks, which shows the backlog:
“ETH’s total supply of cryptocurrencies held on stock exchanges continues to increase, with a 3.63% rise since the bottom on March 24 shortly after Black Thursday. Meanwhile, the top 100 non-exchange addresses increased their portfolio by 8.2% in just 35 days. Both can be called bullish signals. ”
These two trends will lead to growth in the price of Ethereum due to fundamental supply-demand dynamics; this indicates that the increase in demand should result in an increase in the equilibrium price of an asset.
After Ethereum hit the new year’s highs, cryptocurrency attracted attention again. Now, different measurements show that ETH’s rally is not yet over.
Ethereum Makes New Highlights
Since the beginning of the month, Ethereum has been consolidating in a narrow range. The smart contracts giant Ethereum was mostly at the $ 447 resistance barrier and the 78.6% Fibonacci retracement level and did not give clear signals as to what direction to go.
On August 26, a buy signal was seen.
An increase in the buying pressure behind Ethereum that began to form around support confirmed the rise. As a result, ETH broke above resistance last week and led a 25% bull rally with a new annual record of $ 467.
Now, Ethereum is preparing a move towards the 127.2% Fibonacci retracement level.
Launch of Yearn.finance May Increase Price Even More
The launch of yearn.finance’s yETH product could boost the investment activity in Ethereum, further raising prices.
When it launches in the coming days or weeks, YETH will be an investment tool that enables investors to earn high returns from their Ethereum deposits.
Analysts say the launch of this product will cause an influx of capital to Ethereum. In fact, some of ETH’s 10% rally in the past two days was associated with the excitement around Yearn.finance’s yETH.
DeFi Revives Ethereum
Charles Hoskinson, founder of Cardano, CEO of IOHK, spoke in his latest YouTube video about Cardano entering the decentralized financial sector. Hoskinson also expressed that he has been obsessed with DeFi recently.
Cardano founder expressed that they have established a new partnership with Emrugo. The famous name used the following expressions:
“We have partnered with Emrugo and we are currently working with them on the logistics of a stable cryptocurrency, we will build on ergo first and then withdraw to verify that everything is working correctly. This will be an algorithmic stablecoin. We think it will be significantly better than MakerDAO. This is just one of many DeFi incidents going on right now. ”
Hoskinson claims he is “directly involved” in many discussions about decentralized finance to make sure the resources are properly provisioned and the right teams are behind them.
Talking about how DeFi is revitalizing Ethereum, Hoskinson states that the first-mover advantage in this area is actually a disadvantage:
“These network effects were temporary and often covered in mistakes, wounds, and explosions. In fact, if you are in the second mover category for DeFi, we will have much more chances than the first movers.
While more than 5.1 million ETH ($ 7.83 billion at today’s price) are now locked in multiple DeFi applications, some industry intellectuals are skeptical.