Ethereum: Will ETH defeat bears despite the ongoing capitulation

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As per the latest data released by Santiment, on 7 May, the Ethereum network experienced a 3.4 times rise in the number of transactions as compared to any other day.

The tweet further went out to state that with the ongoing market capitulation, this is the first time in the last 3.5 years that the ETH token has witnessed this volume of transactions in a single day.

Ether at the moment

The token, at press time, was in the green, but it hasn’t performed quite well in the last four weeks, to be precise. At the time of writing, the price of ETH stood at $2,696.

The Awesome Oscillator (AO), stood below the zero line, at press time and flashed bearish signals for most of its sessions. The Relative Strength Index (RSI) further stood at a score of 39.84 after trying to cross neutral 50 on 4 May.

Source: TradingView

Moreover, the MVRV rested at a score of 1.45 at press time. This goes on to assert that the token was neither overvalued nor undervalued.

Source: Glassnode

Furthermore, as per data from Santiment, the readings of daily volume on the Ethereum network as well as the daily active addresses somewhat point toward growing investors’ interest in the token even though many of the investors chose to walk away cutting losses.

The daily active addresses at the press time stood at 488.19K which is slightly lower than the daily active addresses of 532.31K on 6 May. Furthermore, at the time of writing, the volume of ETH stood at 17.87 billion, whereas the volume for 6 May stood at 24.32 billion.

Source: Santiment

As per additional data from Glassnode, the exchange netflow for 6 May stood at +33.7 million, hinting that a majority of the ETH holders are keen on selling their token.

Although the performance of the ETH token hasn’t been up to the mark in the ongoing market, investors can still expect positive momentum in the months to come, thanks to the ‘Merge.’ But, the journey of the token northwards would surely be a difficult one.

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