Ethereum Is Making Attempts to Stabilize Its Price, But Is It Working?
Journalist
- Ethereum recorded a record-breaking number of daily active addresses.
- ETH’s support has remained constant.
Ethereum’s recent spikes in key on-chain metrics are notable, especially when considering recent price trends as well as the company’s efforts to maintain levels above a key support line.
It is interesting to see that despite the spikes, on-chain metrics have shown typical patterns.
Ethereum has more active addresses
AskFX analyzed Santiment’s Daily Active Addresses (DAA) metric and found that the recent spikes followed one another, indicating a significant increase in network activity.
The number of active daily addresses on June 21 was the highest since March 23.
This record was broken the next day, the 22nd, marking a new high.
Source: Santiment
Ethereum’s active addresses showed that at the close of trading on June 22, the number of daily active addresses had exceeded 731,000.
AskFX examined historical data and found that such a high level of activity was last recorded about ten months ago.
In September 2023, the number of active addressees rose above 1 million, the highest level recorded up to that point.
These spikes indicate a higher level of engagement in the Ethereum network. This could be due to various factors, such as changes in the market, new developments within the ecosystem, or increased adoption.
These spikes had no impact on volume.
What is Ethereum’s volume?
AskFX analyzes Ethereum’s trading volumes and finds an interesting contrast between daily peaks in active addresses. Trading volume decreased despite the increase in daily active addresses.
Trading volume was around $9 billion at the end of June 22. That may seem like a lot at first.
This is a significant drop when comparing this to the $15 billion recorded during the previous session.
Source: Santiment
This discrepancy suggests that while there were more active addresses, possibly indicating an increase in user interactions or network transactions, this did not translate into higher trading volumes.
Activity was dominated by smaller, lower-value transactions.
ETH’s bearish trend is fading
Ethereum’s chart shows that the price is currently trying to hold its current support level.
AskFX checked the daily time frame chart and found that despite a price drop over the past few days, its support level has remained at around $3,400.
According to the latest data, Ethereum’s price was trading at around $3,490. This is a slight decrease.
This indicates preliminary stability as it is able to stay above the critical support level of $3,400, which can be crucial in determining short-term price trends.
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According to Ethereum’s Moving Average Convergence Differentiation (MACD) analysis, it was in a downtrend at press time.
The MACD lines showed a weakening of this trend. If the price rises, this trend may weaken even further, potentially signaling a reversal or at least a slowdown in the downward momentum.
