With the Ethereum proof-of-stake migration less than 44 hours away, members of the community have taken a bullish stance on ETH. This is reflected in the surge in transaction numbers on the Ethereum network, the rise in trading volume, and the rise in the price of the ETH cryptocurrency.
All indicators show that the future of Ethereum is bright. However, one thing that stands out more than others is the relationship between the ETH market capitalization and the number of ETH tokens in circulation.
ETH Price Trend Shows Highest Bullish Sentiment Since 2021
According to a recent graph from Santiment, there is a bullish divergence between the circulating ETH and the market capitalization of the token. This is mainly because traders and DeFi participants are bullish about the future of the Ethereum network. The last time Ethereum was this bullish was in May 2021.
The technical indicators show increased interest in the Ethereum network but it is not a guarantee that the price of ETH will continue to rise after the merger. Some analysts predict that there will be a major pump and dump right after the upgrade due to FOMO.
Long-term, the merger will fix the fundamental problems on the Ethereum network making it a more sustainable decentralized computer. This means that even if there is an initial pump and dump by investors, ETH will find relative stability and regain bullish momentum a few weeks and months after the full migration to proof-of-stake.
Ethereum ETH Price Analysis Today
At the time of writing, ETH was trading at $1,736.92, down 0.62% against the USD. Over the last 24 hours, the price of ETH has traded in the $1,682.43 and $1,754.97 range. Despite the current correction, the 2-week graph shows that ETH has been relatively bullish in the last few weeks. It is still the second largest coin per market capitalization.