Ethereum Activity Surges, Yet Price Stalls Below $3,000

In Brief:

Ethereum's network activity has surged, with a 21% rise in daily active addresses and an 8% increase in transactions, yet ETH price remains under selling pressure.

Despite the increased activity, Ethereum's price is struggling to rise due to negative market sentiment, with a Chaikin Money Flow indicator showing more selling than buying.

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Ethereum Activity Spikes, but $3,000 Remains Out of Reach

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The Ethereum network has witnessed a significant surge in activity over the past week, marked by a notable rise in daily active addresses and new accounts. Data from Artemis indicates that the daily count of unique addresses completing at least one transaction increased by 21%, totaling 362,000. Correspondingly, daily transactions on the network rose by 8%, reaching 1,159,085.

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Typically, an increase in Ethereum’s daily active addresses and transaction count is viewed as a positive indicator for its price. However, Ethereum's price has faced selling pressure, with traders offloading the altcoin, raising concerns about its short-term outlook. The Chaikin Money Flow (CMF) indicator, which measures money flow into and out of an asset’s market, remains negative at -0.11, indicating more selling than buying.

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Currently trading at $2,465, Ethereum's price may fall to its immediate support level of $2,353 if selling activity intensifies. If this level is breached, ETH’s value could drop further to $2,111. Conversely, a spike in new demand could drive its price to $3,102, a level last reached in August.

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