Key Points
- Ethereum [ETH] has seen a significant increase in price and active addresses.
- This growth may be due to increased on-chain activities and strong network adoption.
Ethereum [ETH] has demonstrated substantial growth recently, with its price surging by 3.74% over the past week.
After hitting a low of $2,379, Ethereum has made notable strides in its value, even attempting to clear previous losses by reaching a high of $2,721.
Ethereum’s Active Address Dominance
According to data from IntoTheBlock, Ethereum is currently leading in terms of active addresses, boasting a dominance of 43%.
Tron follows with a 27% address dominance, indicating a growing user base.
Other cryptocurrencies like Tether’s USDT and Toncoin also exhibit significant transaction activity.
The dominance of Ethereum is indicative of robust network activity and adoption, which could potentially lead to further price increases.
The Potential for an Ethereum Rally
The surge in active addresses often precedes a price increase.
This pattern has been observed in the past week, suggesting that the current market conditions could set the stage for further Ethereum gains.
The Exchange Supply Ratio of Ethereum has also decreased to a monthly low, dropping from 0.145 to 0.141, indicating increased accumulation.
This suggests that investors are transferring their assets from exchanges to cold wallets, a sign of market confidence.
Furthermore, Ethereum’s MVRV Long/Short difference has remained negative over the past week, showing that long-term holders are confident in Ethereum’s prospects and are in the accumulation phase.
Ethereum is currently building strong upward momentum, as evidenced by a declining ADX and an increased +DI to 26.
At the time of writing, Ethereum was trading at $2,643, marking a 3.74% increase over the past week.
The rise in active addresses indicates increased demand for Ethereum. If this trend continues, Ethereum’s fundamentals could strengthen, leading to further gains.
With a strong uptrend, Ethereum is well-positioned to challenge the $2,800 resistance level.
