Active Ethereum addresses continue to decline. This comes on the heels of the market crash as the price of Ethereum fell below $1,000 before recovering again. This drop showed various implications for the digital asset and also indicates how investors might feel about the digital asset.
Activity drops to its lowest level for 2020
The data from the block shows that a file active addresses On the Ethereum network based on seven days idle. These active headlines reached a new all-time high in June 2021 when the bull market was in full bloom. The surge in active headlines has been attributed to new investors moving into digital assets due to the massive success it has seen so far at that point.
However, as the price of the digital asset began to suffer, so did the active titles. This came to a head in mid-June 2022 when the cryptocurrency market experienced the worst market crash in more than a decade. Ethereum quickly dropped from around $1800 as it was trending and touched the lows below $900.
After that, there was a slight uptick in the active headlines as investors scrambled to move their money to avoid further losses. However, as the sell-off faded, the number of active titles also declined.
ETH active addresses decline | Source: The Block
Last week, it reached a new 2-year low with 403.38K active addresses on Ethereum on a 7-day rolling basis. This was in line with the number of new addresses on the network on the same rolling basis which also fell to its lowest levels in December 2020.
In response to Ethereum
With the start of the new week, the effects of the decline in active titles are still to be seen. However, it does show what investors might do in relation to their holdings. One of these could show that there is now some selling fatigue that has rocked the market lately. As such, most investors do not move their coins in order to get rid of them.
If the historical movements are followed, this could also mean that there is a recovery coming for the digital asset. Given that the last number of active titles was this low, right before the 2021 bull run, a sell-off could certainly lead to a crypto rally back.
However, if a recovery is present on the charts, it will be an uphill battle given the resistance that is building just above $1,200. If ETH manages to break this resistance, it will put it just above the 20-day moving average, providing the necessary momentum to test $1,500 again.
Featured image from Admiral Markets, chart from TradingView.com
Follow Best Owie on Twitter For market insights, updates, and sometimes funny tweets…