Ethereum Experiences Price and Activity Declines

Recent data indicates a 6.18% decline in ETH value over the last 24 hours, with daily active addresses dropping by 18.32% year-to-date to 312k from 382k.

Price Decline and Market Analysis

Ethereum has faced a significant drop in price, with a 5.46% decrease over the past week, currently trading at $2480. Although there was a 1.57% monthly increase previously, the recent losses have almost negated those gains.

Ethereum’s Active Addresses Decline

According to Cryptoquant, Ethereum’s daily active addresses peaked at 382k but have since decreased to 312k. The lack of new investors entering the market has been cited as the primary reason for this decline.

Implications for Price Trends

A decrease in active addresses usually results in price drops, but despite this, the market conditions point towards a potential recovery for Ethereum. Investors’ confidence is reflected in the rising demand for long positions, indicated by a positive funding rate and open interest weighted funding rate.

Moreover, large holders of Ethereum are accumulating assets and maintaining their positions, signaling a positive outlook for the altcoin’s future.

Despite the decline in active addresses, Ethereum shows resilience on price charts, suggesting overall positive sentiment in the market. If current trends continue, ETH could target a recovery towards $2668, with support at $2728 in place.

Conclusion

ETH’s performance amidst declining active addresses showcases market confidence and potential for recovery. Investors remain optimistic about Ethereum’s future prospects, highlighting a positive outlook for the altcoin.