Despite price stagnation under $400, Ethereum fundamentals are still strong

After a 60 percent rally in the span of two weeks, the price of Ethereum is cooling off.

Other cryptocurrencies are following suit, printing red price candles as the stock and precious metal markets also take a breather.

According to CryptoSlate data, the price of the cryptocurrency trades at $375 as of this article's writing.

Despite this price action, the fundamentals of Ethereum remain strong, suggesting the cryptocurrency remains in a macro uptrend.

Ethereum fundamentals remain bullish: on-chain data.

As decentralized finance and other Ethereum applications have continued to gain traction, the number of daily transactions on the second-largest blockchain has continued to swell.

The transaction count isn't the only positive on-chain trend for Ethereum.

IntoTheBlock's dashboard for Ethereum says the ETH is "Mostly bullish." Along with a strong number of daily transactions, the blockchain is seeing net network growth, an increase in "Large transactions," and order book data that suggests there are many buyers of ETH at the moment.

"Over 90% of the circulating ETH supply is now in a state of profit, i.e. the current price is higher compared to the price at the time the coins last moved. Last time this we saw this level was in Feb 2018 when the ETH price was at $925.".

When the price of an asset increases as fast as ETH has, the incentive to sell it increases.