Ethereum (ETH) Network Activity Increases, Impact on Price?
The Ethereum price is poised for a bullish breakout, signaling a potential trend reversal. To achieve this, ETH must surpass the crucial Fibonacci resistance level between $2,400 and $2,600.
The Overwhelming Majority of Ethereum Addresses Are in Profit
Approximately 76% of Ethereum addresses are currently profitable at the current price of around $2,200. Only 22.5% of addresses are at a loss, while 1.17% are at the break-even point.
“In the money” refers to addresses with a profit, while “out of the money” refers to addresses with an unrealized loss.
Ethereum Network Activity is Surging
In the past week, Ethereum network activity has seen significant growth. The number of new addresses on the ETH network has increased by approximately 17.5%. Active addresses have risen by around 23%, and Ethereum addresses without ETH balances have surged by about 74%.
There Has Been a Surplus of Withdrawals on Exchanges
Over the last seven days, crypto exchanges have experienced around 166,320 more ETH withdrawals than deposits. Additionally, centralized exchanges’ ETH balance has declined by 139,150 in the past 24 hours. This suggests that these withdrawn ETH will be held rather than used for trading.
More Than Half of ETH Tokens are in the Hands of Retail Investors
Retail investors hold the majority (approximately 54%) of ETH tokens. These retail investor addresses individually own less than 0.1% of the total supply. On the other hand, there are only six whale addresses that each hold more than 1% of the supply, making up around 35.6% of the token supply.
Furthermore, 62 addresses hold between 0.1% and 1% of the ETH supply, accounting for roughly 10.7% of all available Ethereum.
Hot Take: Ethereum’s Increasing Network Activity and Profitable Addresses Point to Positive Price Potential
The surge in Ethereum network activity, coupled with the majority of addresses being profitable, indicates a positive outlook for the ETH price. The growing number of active addresses and the withdrawal surplus from exchanges suggest increased investor confidence and potential hodling behavior. Additionally, the distribution of ETH ownership among retail investors and whales further highlights the market power held by major players. As Ethereum continues to gain traction and its network expands, it could contribute to a bullish trend reversal and potentially drive the price higher.
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