Ethereum network activity remains a useful statistic to determine ETH trend direction
According to the on-chain analytics firm sentiment“ETH still has a very low level of new addresses, the lowest in 2 years.”
As #ethereum Once again falling above $1,800 a few minutes ago, we are monitoring long-term fundamentals which would signal a turnaround for the #2 asset. #crypto, $ETH The level of new addresses still appears to be very low, the lowest in 2 years. https://t.co/0sXU6D6igO pic.twitter.com/jf6gySyz0j— sentiment (@santimentfeed) 9 June 2022
New addresses refer to newly created addresses that receive their first deposit in Ethereum. The new addresses serve as a proxy for new money entering the crypto-asset. This can be perceived in some circumstances as a sign of optimism or even FOMO (fear of missing out). Zero balance addresses, on the other hand, represent money leaving the crypto-asset. They suggest that investors are losing interest or trust in an asset, or that they are acting in fear.
Ethereum network activity continues to be a useful statistic for determining the direction of ETH trend. Lower lows indicate bearish patterns, while higher highs indicate bullish patterns.
In shorter time frames, the total number of addresses with a balance can indicate a trader’s position and serve as a potential indicator of price action.
According to Sentiment, Ethereum is seeing a drop in new money entering the network. The price of Ethereum subsequently declined, with fewer people using ETH to transact and buy NFTs. Thus, an uptick in network activity could indicate a price change under normal circumstances.
ethereum price action
After reaching a high of $1,918, Ethereum tested the support at $1,725 on June 7. The price is currently consolidating between the descending daily MA 50 and $1,700.
In the following days, a range extension is possible, which could pave the way for the next directional move. If buyers lift the price above the psychological $2,000 level, Ethereum could face a major hurdle near the $2,700 level, where the bears could build a powerful defense. If the price falls below this, the pair may be trapped within its current range for some time.
A break below $1,700 could signal the start of a fresh bearish start, while a break below $2,700 could suggest the start of a bottoming process. Ethereum was priced at $1,768 at the time of publication.