Active Ethereum Addresses Touch 2020 Levels, Will Price Follow?
July 04 2022 - 7:00PM
NEWSBTC
Ethereum active addresses have continued to decline. This follows
the market crash where the price of Ethereum had dropped to below
$1,000 before staging another recovery. This decline has shown
various implications for the digital asset and also points towards
how investors could be feeling towards the digital asset. Activity
Falls To 2020 Lows Data from the Block shows that the active
addresses on the Ethereum network on a seven-day basis are down.
These active addresses had hit a new all-time high back in June
2021 when the bull market had been in full bloom. The rise in
active addresses was attributed to new investors moving into the
digital asset due to the immense success it had seen so far at that
point. Related Reading | New Bitcoin Record Paints Incredibly
Bearish Picture As BTC Struggles At $19,000 However, as the price
of the digital asset had begun to suffer, active addresses had gone
down with it. This came to a head in the middle of June 2022 when
the crypto market had experienced arguably the worst market crash
in its more than a decade of existence. Ethereum had quickly
declined from around $1,800 where it had been trending and touched
a low below $900. Following this, there had been an uptick in the
active addresses as investors scrambled to move their funds to
avoid further losses. However, as sell-offs have died down, the
number of active addresses has also taken a nosedive. ETH active
addresses decline | Source: The Block Last week, it hit a new
two-year low with 403.38k active addresses on Ethereum on a rolling
7-day basis. This had been in line with the number of new addresses
on the network on the same rolling basis which had also fallen to
December 2020 lows. Ethereum In Response With the new week just
starting, the implications of the decline in active addresses are
still yet to be seen. However, it does show what investors may be
doing in regards to their holdings. One of these could show that
there is now fatigue in the sell-offs that have rocked the market
in recent times. As such, most investors are not moving their coins
around in order to dump them. If following historical movements,
this could also mean that there is a recovery coming for the
digital asset. Given that the last that the number of active
addresses was this low, right before the 2021 bull run, a halt in
sell-offs could definitely see the cryptocurrency retrace upward.
Related Reading | Leading Crypto Exchanges See Negative
Funding Rates, Have The Bears Taken Over? However, if a recovery is
on the charts, it will be a hard-fought battle given the resistance
that is building just above $1,200. If ETH is able to break this
resistance, it will put it right above its 20-day moving average,
providing the momentum needed to test $1,500 once more. Featured
image from Admiral Markets, chart from TradingView.com Follow Best
Owie on Twitter for market insights, updates, and the occasional
funny tweet…
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Apr 2023 to Apr 2024