Ethereums Largest Spike in Active Addresses Sparks Price Prediction for ETH
Ethereum (ETH) is currently experiencing a surge in activity both on its network and from the legal front. Amid these developments, the valuation of Ethereum as the decentralized finance (DeFi) asset continues to struggle with key resistance levels, attracting attention.
In recent developments, the network has seen a significant increase in active addresses, as per data provided by crypto analyst Ali Martinez in a post on June 22. The data indicates that Ethereum has experienced its largest spike in active ETH addresses in the last three months, reaching 617,170. This uptick in activity suggests a growing interest and engagement with the Ethereum blockchain, which could have an impact on its price movement.
The increase in active addresses could be seen as a sign of increasing network usage and confidence in the platform. Historically, such spikes in active addresses have often preceded price rallies, as increased activity can indicate higher transaction volumes and more utility.
In addition to the increase in active addresses, Ethereum is also witnessing a rise in other metrics. According to data provided by crypto analytics platform CryptoQuant, Ethereum’s Market Value to Realized Value (MVRV) indicator is rising faster than Bitcoin’s (BTC) MVRV. MVRV is used to assess whether the token is undervalued or overvalued in terms of its market capitalization relative to its realized capitalization.
The spike in user activity coincides with a period when Ethereum is relatively subdued, aligning with overall crypto market sentiments. CoinCodex, a platform utilizing AI-driven machine learning algorithms, has offered Ethereum’s price prediction in the short term, forecasting that ETH will likely trade at $3,552 by July 1, 2024, reflecting a modest price gain of 1.6%.
Ethereum remains in focus after the Securities and Exchange Commission (SEC) moved to close its “Ethereum 2.0” investigation of ConsenSys. According to ConsenSys, the SEC’s enforcement division notified the blockchain company that it was closing its investigation into Ethereum 2.0 and stated that it “would not bring charges alleging that sales of ETH are securities transactions.”
As of press time, Ethereum was valued at $3,497, with minimal gains of about 0.05% in the last 24 hours. On the weekly chart, Ethereum is down 2.5%. Over the past seven days, Ethereum has faced significant downward pressure influenced by regulatory news, with the key support level to watch around $3,495 and major resistance at $3,550. If Ethereum can maintain above $3,495, it might attempt to break through $3,550, otherwise, failure to hold $3,495 could lead to further declines.
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