The on-chain activity of Ethereum (ETH), the second-largest crypto by value, is declining. TradingPlatforms.com established that new addresses on Ethereum Network recorded a 62.98% decline since the beginning of the year. In January, the number of new addresses on the Ethereum Network was 3.08 million. Comparatively, the number of new addresses on Ethereum by August 16 stood at 1.14 million.
Speaking on the data, TradingPlatforms.com’s Edith Reads said. “Cryptocurrency has been bearish. Most people are avoiding it currently, and Ethereum is a casualty. However, all is not lost. There are signs that Ethereum might begin to rise. The active wallets by August 16 stood at 8 million. This is a good sign.”
Why the Decrease in the Number of New Addresses on the Ethereum Network?
Hesitancy could be one of the causes of the drop in the number of new addresses in the Ethereum Network. The price crash hit most significant digital assets, including Ethereum, over the past few months. Thus, very few people would have an interest in opening new addresses.
Ethereum’s value dropped from $3,349.76 in January to $1,877.24 in August. Nonetheless, there is hope even though the market is currently gloomy.
Besides, the decrease could mean that other altcoins are coming up. Likely, more users might be shifting to other altcoins such as Dogecoin.
Eth Is Currently Re-Examining a Crucial Support Point
The price of ETH does not appear to be highly hurting. However, there may be some form of panic among retail investors. The most recent data from TradingPlatforms suggests that Ethereum is trading inside its support area. The support area runs between $2,380 and $1,800. Besides, there are over 683,000 addresses that contain around 13.64 million ETH tokens.
The past price drops and price recoveries suggest that the current red zone surrounding ETH is not necessarily a bad situation. Nevertheless, a severe breach of the support level would swiftly lead to a downward spiral in the case. This can bring the price of ETH down to around $1,700. It is also possible that the opposite will occur, giving ETH a significant price gain. In either case, all we can do is wait and observe how the market forces behave.