Ethereum on Cusp of Breaking Out As Traders Rotate Memecoin Profits Into ETH, Says Analytics Firm

A leading analytics firm says that Ethereum (ETH) is flashing a bullish on-chain signal as traders pile into the leading smart contract platform.

Santiment says that Ethereum is witnessing a strong surge in active deposits, a metric that tracks the number of unique deposit addresses on an exchange that have been active on a particular day.

According to Santiment, Ethereum has hit 20,000 active deposits for the first time since November 2021 as traders rotate their profits from red-hot memecoin Pepe (PEPE) to ETH.

“Exchange addresses interacting on the network is now at its highest level since November, 2021. As expected, ETH is showing decoupling signs and on the cusp of breaking $2,000 once again.” 

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Source: Santiment/Twitter

Pepe, a frog-themed memecoin, is up an eye-popping 4,543% from its all-time low of $0.00000005, which it hit less than three weeks ago.

At time of writing, Ethereum is trading for $1,928.

Looking at the broader crypto markets, Santiment says that digital assets are starting to show signs of decoupling from the stock market. According to Santiment, crypto has remained relatively firm following the Fed’s latest interest hike.

“As expected, the Fed raised interest rates by 25 basis points in the Federal Open Market Committee meeting. Rates have now been raised by a jarring 5% in 14 months as the US continues to battle inflation. Crypto’s correlation to these events has lessened, a positive signal.” 

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Source: Santiment/Twitter

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