Sentiment: Growth of a key indicator could be a bullish signal for Ethereum

The market saw a small rise after Federal Reserve Chairman Jerome Powell’s comments on interest rate hikes in December; However, the general trend did not change much. Meanwhile, analyst firm Sentiment says that the growth of a key indicator in China could be a bullish signal for the Ethereum price to rise in the coming weeks.

According to the report of DailyHodle, according to Sentiment, the increase in the activity of addresses in the network can be a sign for the jump in the price of Ethereum; A metric that measures the number of unique addresses that transact per day.

The number of active Ethereum addresses yesterday reached its highest level in more than six weeks, and this is likely to have contributed to the rise in the price of Ethereum today. On October 15, the last time the number of active addresses increased to this level, Ethereum price jumped 30% over the next three weeks.

Sentiment also noted that the number of Ethereum whales and sharks, wallet addresses with balances between 100 and 100,000 ETH, has been increasing since the collapse of the FTX exchange in early November (mid-November).

The number of major Ethereum key addresses has increased since the FTX crash in early November. The image represents the key moments in which the addresses of the sharks and whales were in the accumulation or selling phase. The number of addresses with 100,000 to 100,000 ETH has reached a 20-month high.

At the time of writing this report, the price of Ethereum is trading in the range of $1,287.

Sentiment also closely monitors Bitcoin’s Social Dominance; An index that tracks the share of cryptocurrency king-related discussions in digital asset media. According to the firm’s analysis, right now, BTC’s social media dominance is lower than average, indicating that recent stability in the broader cryptocurrency markets is likely not sustainable.

Bitcoin’s social dominance is still low; Because traders don’t seem to be interested in the number one digital currency, while altcoins have seen more price volatility in the past week or two. The high social dominance of Bitcoin is one of the basic elements for the price increase of all digital currencies.

The price of Bitcoin is also fluctuating in the range of $17,135 at the time of writing this report.