Will the price of ETH fall to $750? Ethereum Daily Active Addresses Plunge to 4-Month Low
The drop in Ethereum daily active addresses comes as ETH price is flat, raising fears of a potential downside ahead.
Market analysisEthereum has seen a substantial drop in its daily active address count (DAA) over the past four months, raising fears of further declines in the price of Ether (ETH) in the coming weeks.< /p> Ethereum's Stagnant Price Scares Investors
The Ether DAA count fell to 152,000 on October 21, its lowest level since June, according to data provided by Santiment. In other words, the dip showed fewer unique Ethereum addresses interacting with the network.
Interestingly, the decline comes after Ether corrected more than 80% from its November 2021 high of around $4,850. This coincidence could mean two things: Ethereum users decided to exit the market and/or discontinued their interaction with the blockchain network after the market downturn.
Sentiment analysts attributed the decline to "weak hands", sentimental traders who exit the market during a bearish or stagnant phase, noting:
"Disinterest [is] at an all-time high as [Ethereum] prices have stagnated."
Notably, the price of Ether has been trading in the $1,200-$1,400 range for over a month, accompanied by declining weekly trading volumes.
Investor disinterest is also visible in Ethereum-based investment funds. These funds saw outflows worth $3.9 million in the week ending October 14, according to CoinShares' latest weekly report.
Additionally, these outflows reached $368.70 million year-to-date.
The drop in Ethereum daily active addresses comes as ETH price is flat, raising fears of a potential downside ahead.
Market analysisEthereum has seen a substantial drop in its daily active address count (DAA) over the past four months, raising fears of further declines in the price of Ether (ETH) in the coming weeks.< /p> Ethereum's Stagnant Price Scares Investors
The Ether DAA count fell to 152,000 on October 21, its lowest level since June, according to data provided by Santiment. In other words, the dip showed fewer unique Ethereum addresses interacting with the network.
Interestingly, the decline comes after Ether corrected more than 80% from its November 2021 high of around $4,850. This coincidence could mean two things: Ethereum users decided to exit the market and/or discontinued their interaction with the blockchain network after the market downturn.
Sentiment analysts attributed the decline to "weak hands", sentimental traders who exit the market during a bearish or stagnant phase, noting:
"Disinterest [is] at an all-time high as [Ethereum] prices have stagnated."
Notably, the price of Ether has been trading in the $1,200-$1,400 range for over a month, accompanied by declining weekly trading volumes.
Investor disinterest is also visible in Ethereum-based investment funds. These funds saw outflows worth $3.9 million in the week ending October 14, according to CoinShares' latest weekly report.
Additionally, these outflows reached $368.70 million year-to-date.
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