Active Ethereum Addresses Reached A Fresh Two-Year Low, Will Its Price Follow?

Active Ethereum Addresses Are Down On A Seven-day Basis, Will Its Price Follow?

The Ethereum network’s active addresses are down on a seven-day basis, according to data from the Block. When the bull market was in full swing in June 2021, these active addresses reached a new all-time high. Due to the enormous success the digital asset had thus far at that moment, the increase in active addresses was attributed to new investors buying the asset.

However, when the value of the digital commodity started to decline, so did the number of active addresses. The crypto market had just gone through what was likely the greatest market slump in its more than ten-year history when this came to a head in the middle of June 2022. Ethereum had a sharp decrease from its trending price of $1,800 and reached a low of around $900.

After then, the number of active addresses increased as investors rushed to transfer their money to prevent more losses. The quantity of active addresses has decreased as sell-offs have slowed down.

With 403.38k active addresses on Ethereum on a rolling 7-day basis last week, it reached a fresh two-year low. This had been consistent with the network’s rolling average of new addresses, which had similarly declined to December 2020 lows.

The effects of the drop in active addresses have yet to be determined as the new week has barely begun. It does, however, illustrate potential investor behavior with regard to assets. A single one of them might indicate that the current market sell-offs have been worn out. As a result, the majority of investors aren’t shifting their holdings to sell them.

This may also indicate that the digital asset will soon see a comeback if previous trends are to be believed. The 2021 bull run was the last time there were this few active addresses, thus a halt to sell-offs would undoubtedly cause the price of the cryptocurrency to retrace higher.

However, considering the resistance that is accumulating just over $1,200, if a recovery is on the charts, it will be a tough fight. The momentum required to test $1,500 once again will be provided if ETH is successful in breaking over this barrier, which will bring it directly above its 20-day moving average.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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