The network saw a notable spike in activity this weekend as Ethereum recovered beyond $3,200, marking its largest one-day gain in almost 19 months. The greatest daily rise in Ethereum addresses since October 8, 2022 occurred on May 4, 2024, with an astounding 196,000 new addresses produced. A optimistic indication of significant and growing interest in Ethereum is this jump in network expansion.
Even if the price of Ethereum has dropped below $3,200, the network’s strength remains. The generation of a substantial quantity of new addresses suggests a surge in new players or a resurgence of interest from current players, perhaps laying the groundwork for further price increases.
From the standpoint of technical analysis, Ethereum is at a crucial point. It looks like the cryptocurrency will soon drop below the 200-day Exponential Moving Average. A breach below this mark might indicate a possible short-term negative outlook.
But this price decrease may be signalling a possible turnaround, given the declining trade volume. Usually, a drop in volume during a downturn indicates that selling pressure is becoming exhausted, which may pave the way for a bullish turnaround if other factors come into play.
Strong network growth and the TA indicators together provide Ethereum a mixed picture. Although there are some negative influences on the price right now, the volume and the spike in new addresses indicate that there may be latent bullish potential that is just waiting to materialise.
A confirmed reversal from the current levels might be confirmed by any persistent moves above the 200-day EMA or indications of rising volume.
