Ethereum (ETH) has shown remarkable price recovery since hitting a recent low of $2,379, with the altcoin pushing towards a high of $2721.
The surge in Ethereum’s price seems to be linked to a rise in on-chain activities, as reported by IntoTheBlock, resulting in a noticeable increase in active addresses, outperforming many other alternative coins.
Leading the Pack: Ethereum’s Dominance of Active Addresses
Current data from IntoTheBlock reveals that Ethereum holds the top spot in address dominance, accounting for 43% of active addresses, leaving other altcoins in its wake.
Trailing behind Ethereum is Tron with a 27% address dominance, pointing towards a growing user base for the platform.
Noteworthy engagement in transactions is also observed from coins such as Tether’s USDT and Toncoin.
Ethereum’s dominance in active addresses reflects a robust network activity and growing adoption, which typically bodes well for a potential price rally.
This data suggests that Ethereum is the current frontrunner in dApps, DeFi, and NFT activities, indicating sustained demand and interest.
Will ETH Rally Further?
Historically, a surge in active addresses has often translated to higher prices, a trend that has been evident in the past week. This trend, coupled with prevailing market conditions, sets Ethereum up for potential gains on the price charts.
Notably, Ethereum’s Exchange Supply Ratio hit a monthly low last week, dropping from 0.145 to 0.141, indicative of increased accumulation as investors move assets from exchanges to cold wallets, reflecting growing market confidence.
Furthermore, Ethereum’s MVRV Long/Short difference has stayed negative, highlighting the confidence of long-term holders and signaling an accumulation phase.
Future Prospects for Ethereum
According to CryptoCrypto’s analysis, Ethereum is currently establishing a strong upward momentum, corroborated by a declining ADX and an uptick in +DI to 26.
At the time of reporting, Ethereum was trading at $2643, marking a 3.74% increase over the past week.
The continuous rise in active addresses reflects growing demand for Ethereum. If this trend persists and strengthens its fundamentals, ETH is poised for further price appreciation.
With a solid uptrend in place, Ethereum stands a good chance to challenge the $2800 resistance level in the near future.