Ethereum faces the music as $2,000 turns elusive – AMBCrypto News

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Ethereum’s quest to surpass the elusive $2,000 mark has been hindered by fluctuating between $1,700 to $1,800, leaving analysts questioning the impact of active address levels on its performance.

Despite multiple attempts, Ethereum’s [ETH] price has struggled to break and maintain the elusive $2,000 threshold. Instead, it has been oscillating between $1,700 to $1,800. Could the lackluster price performance be linked to the activity levels of Ethereum’s addresses?
How much are 1,10,100 ETHs worth today?
Ethereum has experienced a recent decline in its active addresses, despite an increase in the number of new addresses created. Analysis of Glassnode data revealed a drop in active addresses starting in April, compared to the period between January and then.
Previously, the average number of active addresses exceeded 400,000, but it has since fallen to around 300,000. As of this writing, the number of active addresses stood at over 391,000.

Source: Glassnode
Active addresses refer to the unique addresses involved in transactions on the Ethereum network, either as senders or recipients. The figure indicated that the monthly average of active addresses was lower than the annual average.
This reduced on-chain activity suggested a significant upward price movement for ETH might not be on the cards anytime soon.
Despite the relatively low activity observed in Ethereum addresses, the staking landscape has been steadily expanding. Glassnode’s staking chart revealed a consistent addition to the new ETH being staked daily.
While a decrease in the volume of daily stakes was noticeable, new stakes are still being made. As of this writing, over 79,000 new ETH have been staked.
Source: Glassnode
Moreover, data from Dune Analytics indicated that approximately 24 million ETH were staked at press time, accounting for over 20% of the total supply. Additionally, the data showed a net inflow of staked ETH since the Shanghai Fork.
This indicated that more ETH holders preferred staking their assets rather than actively trading on exchanges.
At the time of writing, Ethereum was being traded at approximately $1,880, displaying a slight increase in value of about 0.6%. Analyzing the daily timeframe chart, it appeared that an uptrend had yet to commence.
The price of Ethereum was trending above its short and long Moving Averages, represented by the yellow and blue lines, respectively, with the yellow line serving as its immediate support level.
Source: TradingView
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While the number of active addresses may have decreased, potentially due to the popularity of staking, the introduction of LSTs (Layer-2 Scaling Technologies) has provided additional utility to Ethereum as an asset.
This indicates that Ethereum remains active and relevant in its wrapped and staked forms, expanding its usage beyond traditional on-chain activities.

Disclaimer:
AMBCrypto’s content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.
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