The number of active Ethereum addresses has continued to fall. Following the Ethereum market crash, where Ethereum’s price dropped below $1,000 before recovering again. This has various consequences for digital assets and points to investors’ feelings towards them.
Activities Fall to 2020 Lows
According to data from Block, the number of active addresses in the Ethereum network over a 7-day period is down. In June 2021, the bull market was in its peak, active addresses hit an unprecedented high. Due to its immense success, new investors poured into the digital asset and this led to an increase in active addresses.
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As the value of digital assets began to decline, active addresses also fell. The crypto market experienced the most severe market crash it had ever seen in more than 10 years of existence in June 2022. Ethereum quickly fell from $1,800 where it was trending to a low of $900.
As investors tried to protect their investments from further loss, the number of active addresses saw a rise. The number of active addresses also dropped as a result.
Source: The Block| Source: The Block
The number of active Ethereum addresses per day on a rolling 7 days basis reached 403.38k last week. This was a record low for the two-years. The number of active addresses was also on a rolling 7-day basis. This is in line to the December 2020 lows.
Ethereum As A Response
As the week begins, we are yet to see the impact of the fall in active addresses. This does reveal some of the possible actions investors are taking regarding their investments. These could be indicators that the market is tired from recent sell-offs. This means that most investors don’t want to move their coins in an attempt to sell them.
This could indicate that the cryptocurrency is on track for a rebound if it follows historical trends. The fact that there was a low number of active addresses in the past, just before the bull run 2021, could indicate that a stop to sell-offs will be able to see cryptocurrency move upward.
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There is resistance building above $1,200, so a recovery will not be easy. If ETH can break the resistance it will move it above its 20-day moving mean, giving it momentum to once again test $1,500.
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