Ethereum faces the music as $2,000 turns elusive
- Ethereum’s active addresses have dropped since the beginning of the year.
- ETH stake has continued to flow in with prices below $2,000.
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?
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Ethereum active addresses decline
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.
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.
Ethereum staking continues as active addresses drop
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.
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.
ETH resting heavily on support
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.
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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.