Ethereum Handles Rally, But ETH Price Could Benefit

Ethereum [ETH]On October 9, it recorded a large percentage increase in number Addresses registered on the blockchain according to data from the analytics platform Santiment.

There were more than 135,000 Ethereum addresses registered, which was 11% higher than the peak number recorded in January 2022.

Look at the reason for the increase

A direct cause for the sudden increase in Ethereum address registrations could not be determined. However, several possibilities that could be responsible were considered.

Many decentralized applications (dApps) have been pulled into Ethereum as it appears to be the largest smart contract due to its Proof of Stake (PoS) network.

In addition, many blockchain projects have been created with Ethereum Virtual Machine (EVM) compatibility in mind. With EVM compatibility, dApps built on other blockchains can communicate with the Ethereum network.

The need for users to create new Ethereum addresses to access and interact with these projects may be a driving force. In addition, investors who were reluctant to invest money in Ethereum due to its energy consumption may have been tempted by its use of a Proof of Work (PoW) mechanism to do so by switching the network to PoS.

Network growth is increasing, but TVL is declining

Examination of network growth metrics on Santiment before October revealed a sideways trend with some moderate upsides. However, the growth rate was clearly on the rise and soon reached the 208,000 level.

Source: feeling

It also turned out that the number of active addresses reached 2.5 million in a seven-day time frame.

Also, despite the fact that this statistic has not yet reached its maximum, it has shown some growth.

Source: feeling

Moreover, according to data Provided by Messari, the Ethereum network has a market value of $161 billion, making it the largest smart contract platform. More than $31 billion in total closed value (TVL) has also been reported.

Not to forget that the network’s TVL peaked at $109.94 in November 2021. However, at the time of writing, TVL is down 0.15%.

Source: DefiLlama

Hoping to hack ETH?

Using the trend lines, it can be seen that the effect of the price on the daily time period has been rising. It was clear that 2013 and $1,780 would act as strong resistance for further gains.

Moreover, it was observed that 200 The moving average (the long moving average) and the 50 moving average (the short moving average) acted as resistance. A downtrend in ETH price was signaled by the short moving average seen below the long moving average.

He found that ETH fell by 48.18% from the resistance level to the support level at the beginning of the bullish line using the price range.

Additionally, the support lines around $1,002 and $882 can be reached if the price declines. However, the price may rise to $2500, if it is able to overcome the immediate resistance of the short moving average.

Source: TradingView

Since Ethereum is the largest smart contract network, many additional network-compatible projects will also be developed on it.

In the future, it is expected that Ethereum will continue to see an increase in the number of addresses. A peak in the volume of transactions.

This can have a beneficial effect on price action. However, investors should keep an eye on the next possible turn, but traders may have the opportunity to buy according to the movements of ETH over the next few days.

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