- Ethereum’s daily active addresses have recently decreased to around 395,000.
- In the last 48 hours, an address transferred over 19,500 ETH to Binance.
- Ethereum has shown substantial growth in daily active addresses over the year, though recent trends point to a slowdown.
Explore the latest trends in Ethereum’s market activity and what they mean for investors.
Decline in Ethereum’s Daily Active Addresses
In 2023, Ethereum [ETH] has seen a significant increase in daily active addresses, rising by 127% mainly due to increased activity on Layer 2 (L2) platforms. However, recent data from Glassnode has highlighted a downturn, with daily active addresses dropping to around 395,000. This trend follows a peak in June at over 700,000 and subsequent decline to approximately 436,000 by the end of July.
Market Dynamics and Increased Selling Activity
According to Glassnode, recent data indicates a shift in market dynamics, with more ETH being transferred to exchanges than withdrawn, signaling stronger selling activity among holders. Over the past month alone, more than 22,000 ETH has moved into exchanges, exacerbated by a recent 19,500 ETH transfer to Binance within the last two days. Such large transfers often indicate a readiness to sell, applying increased supply pressure on the market.
Price Impacts and Bearish Trend Indications
This heightened selling activity has coincided with a recent drop in Ethereum’s price. As more ETH is moved to exchanges, the market faces increased selling pressure, which can drive prices down if demand doesn’t keep up. On the technical analysis front, Ethereum’s Relative Strength Index (RSI) is currently around 41, marking an increasingly bearish trend. At the time of writing, Ethereum’s price has fallen by 1.4% over the past four days, standing at approximately $3,154.
Conclusion
In summary, while Ethereum has enjoyed significant growth in user activity over the year, recent trends point to a decline in active addresses and increased selling pressure. These dynamics are essential for investors to monitor, given their potential impact on Ethereum’s price and overall market behavior. As more ETH becomes available on exchanges, the growing supply without matching demand could sustain the downward price trend observed recently.
