Ethereum’s post-Merge blues: Will ETH finally be able to get out of it?

According to a recent report by Glassnode, there has been a spike in the number of new addresses on Ethereum. This could be indicative of a sustained interest in the altcoin. Now, while that may be the case, however, the decline in sentiment and volume seemed to suggest otherwise at press time.

This or that?

A tweet shared by Glassnode on 2 October revealed that the number of new addresses just hit a 1-month high of 3,001.804 on the Ethereum network. 

As can be seen from the image below, the number of new addresses being added to the Ethereum network had been on a decline in August, before recovering somewhat in the weeks that followed. 

Source: Glassnode

The spike in the number of addresses was also accompanied by a surge in Ethereum’s social media presence. Over the past month, Ethereum has seen  a 4.02% increase in its social mentions and a 26.9% hike in its social engagements.

Now, even though Ethereum managed to make some noise on social media space over the last 30 days, the sentiment towards the altcoin wasn’t all positive. For instance, according to Santiment, Ethereum saw a decline in its weighted sentiment over the past two days. At the time of press, the weighted sentiment for Ethereum had a reading of -0.453.

Now, although public sentiment was negative for Ethereum, it didn’t deter whales from investing in ETH. According to a tweet by WhaleStats, the top 5000 ETH whales have been adding onto their interest in Ethereum. In fact, ETH now tops the list of coins that these whales have invested in.

On the face of it, this could be perceived as a positive factor for potential ETH investors. However, there have been some areas of concern as well.

Source: Santiment

Concerns? What concerns?

Consider this – Ethereum’s volume has been declining over the past few days, as can be seen from the chart attached herein. It fell from 13.12 billion on 30 September, all the way to 6.03 billion on 02 October. Ethereum’s development activity has been on the decline as well, indicating that there hasn’t been much activity on Ethereum’s GitHub.

However, Ethereum’s velocity did see some growth over the last 48 hours, implying that the frequency with which ETH has been moving from one wallet to another has seen some growth.

Now, although there have been some positive factors in favor of Ethereum, ETH’s price hasn’t been able to combat the post-Merge blues just yet. Ethereum was trading at $1,313.26, at press time, having depreciated by 1% over the last 24 hours.

Even though Ethereum’s price did see some volatility recently, it also got a nod of approval from German telecom giants Deutsche Telekom after they announced plans to run an Ethereum validator.