Ethereum is witnessing a surge in network activity, capturing the spotlight in the cryptocurrency world. Data from blockchain analytics firm reveals a record high of 484,000 unique daily addresses interacting on the network, signifying a growing interest in Ethereum’s diverse applications.
This increase in network usage poses a question about Ethereum’s market trajectory. The spike in interactions involving transactions, smart contracts, and decentralized applications (dApps) could be a precursor to a rise in Ethereum’s market value, making it a focal point for investors and market analysts alike.
Data from Santiment, shows that Ethereum now has 484,000 distinct addresses active on a daily basis. This represents the number of unique users on the network, indicating a rise in both its demand and functionality.
More active addresses imply there are more users conducting transactions, using smart contracts, engaging with decentralized applications dApps, and participating in other Ethereum-based activities.
Santiment reports a positive trend in active addresses and network expansion on Ethereum. This surge in usage is a key factor supporting a growing market capitalization. The network is expanding 28% faster than three months ago, with 101,000 new Ethereum addresses created daily and 484,000 unique daily interacting addresses.
Ethereum’s price peaked at $2,715 on January 14, continuing its uptrend from the October 19 low of $1,535. It interacted with the ascending resistance of $2,000, anchored at the first recovery after the bear market ended in August 2022.
From June 2022, we saw the formation of this ascending structure. Although there was a recovery, it wasn’t as strong as some other cryptocurrencies in the same period. ETH may well have underperformed compared to the rest of the market, but can it now make a stronger breakout?
It could, but that isn’t as likely as a further decline. The ascending structure could have been the first bullish move in a starting bull market. However, we haven’t seen its first correction. If this was a leading diagonal forming in a five-wave manner, we could now see Ethereum falling further as an ABC correction develops. From its January peak, the price has dropped 20%, wiping out all the gains previously made. It could continue moving down, and we could expect it to go below $2,000 again.
The significant Fibonacci retracement levels of 0.5 and 0.618 are between $1,780 and $1,540, where ETH is most likely to find support on the expected downturn.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.