ETH Actives Addresses Hit Multi-Year High, Price Drops Below $3,500 Suggesting Consolidation

Ethereum’s on-chain activity has attracted significant attention with its notable increases recently, according to fresh data reported today by market analyst Ali Martinez.

As per the data, Ethereum daily active addresses have risen to 841,100.

ETH Daily Active Addresses Hit Highest Level

In this case, “daily active addresses” is an on-chain metric that measures the overall number of ETH addresses that are participating in some form of transaction activity every day.

The data disclosed that the number of Ether daily active addresses has substantially expanded recently, currently reaching 841,100, the highest mark in a year. This means traders have been entering the network recently, suggesting heightened interest in the asset.

The remarkable surge of ETH active addresses played a substantial role in supporting its recent price rises.

However, after the increase of Ethereum addresses, prices started to drop to the current level below $3,500. This means user activity could be declining in the network, possibly investors are pulling away from the asset.

ETH to Continue Experiencing Correction

The asset’s value is currently trading at $3,505.99, down 3.7% over the past 24 hours. Trading volume has also dropped 7.10% from yesterday, indicating a recent decrease in market activity. Its price has also been down 6.8% over the past seven days, absorbing recent price gains.

The fall in prices and trading volume suggests Ethereum is currently witnessing a consolidation period. However, its price remains above the 20-day MA (Moving Average) of $3,355, signalling buyers’ dominance – this mark functions as a significant support zone for the token.

Ether’s recent price action has been remarkable, with the altcoin rising from a low of $3,013 on July 15 (last month) to a high of $3,940 noted on July 28 (four days ago). After experiencing the current drop, ETH is currently holding around the 20-day EMA (Exponential Moving Average), suggesting consolidation before a potential next movement.

Despite the recent drop, the above technical indicators, along with a surge in daily active addresses, indicate a rising interest in the asset.

Ethereum’s RSI currently stands at 75.44, indicating the asset is overbought and therefore will still experience a correction.