Ethereum has lost nearly 15% of its value in the last 7 days after touching an all-time high of almost $4,900. While the price of ETH stayed above $4,000, its market cap has dropped from the $500 billion level.
However, Ethereum's fundamental indicators remained strong in the last few days. The total number of daily active ETH addresses currently stands at around 650,000. Though, ‘Buy the Dip’ calls dominated the market sentiment during the recent correction.
The rising transaction fee is still a major issue with Ethereum. The ETH community is hopeful about a solution after its network upgrade, but current data suggests that users have struggled due to an enormous rise in fees during the market drop this week.
"At almost 650K daily active addresses (at the moment of writing this) which is very decent for ETH. Compared to ATH activity (800K) earlier this year. We could say that Ethereum addresses are in a decline but still holding relatively strong. Are people mad at Ethereum for dumping? Maybe. Because sentiment has dropped like a rock but recovered very quickly. Now we're still positive. Very positive. 'Buy the dip' calls dominate. So, we'd say there's still room to drop in the Ethereum narrative cycle,” Santiment highlighted in its report.
Ethereum 2.0
The network upgrade of Ethereum looks set to solve several issues, including energy problems, high fees and transaction speeds. The crypto community has supported the upgrade with the staking of nearly 8.3 million ETH. According to Etherscan, the deposit contract of Ethereum now has more than $35 billion worth of ETH.
Commenting on the address activity of ETH, Santiment mentioned: “Ethereum is seeing its top 10 largest non-Exchange addresses continue to grow larger, while the top 10 largest exchange addresses shrink. There is a record 5.16x [increase in] the amount of ETH on top 10 non-exchange vs. exchange whale addresses now, a great sign.”
