Ethereum miner earnings reach a monthly high, but here’s the catch

  • The number of daily active addresses in ETH rose to a monthly high in the past three days.
  • The volume of transactions was relatively low, indicating the lack of a strong electoral presence.

Ethereum network activity has seen a significant recovery this week as market conditions improve. This is highlighted in the latest Glassnode report which reveals that miners’ earnings have reached a new monthly peak.


Read the Ethereum (ETH) price forecast 2022-2023


Profits from Ethereum mining are a useful metric not only for evaluating mining profitability. It can be used to evaluate the level of network usefulness. Especially if the market is coming from a period of low volume and low demand.

This type of scenario has been the case in the market, so the noticeable increase in miners’ earnings is good news for investors.

In terms of Ethereum network activity, the number of daily active addresses increased to a monthly high over the past three days. This means that the number of ETH transactions has skyrocketed during the same time and this would explain why miners’ profits have increased as well.

Source: feeling

A noticeable increase in the volume of transactions may indicate accumulation and thus the return of bullish demand. As a result, the price movement of ETH continued to gradually increase.

It managed a 9.3% rally over the past two days, confirming that the recent surge in active addresses has been mostly buying volume. ETH was trading at $1,265, at the time of writing.

Ethereum (ETH) price movement

Source: TradingView

Will Ethereum maintain the highest network utility?

The upward pressure responsible for ETH’s current bullish trend has been reflected in a slight increase in transaction volume so far this week. However, it was relatively low compared to the highest daily transaction volume earlier in November.

Ethereum transaction volume

Source: feeling

The fact that the volume of transactions was relatively low indicates the lack of a strong electoral presence. It can also be confirmed that the observed increase in active addresses reflects increased retail activity.

The retail market usually has less influence on price than whales do. Speaking of whales, incoming selling pressure was seen from addresses between 1,000 and 100,000 ETH.

Ethereum supply distribution

Source: feeling

In addition, titles with between 1 million and 10 million coins have also reduced their balance. Selling pressure confirms that there has been some profit taking in the past 3 days.

Enough selling pressure may eventually trigger a bearish bounce. However, there was also some buying pressure from some of the whales, especially those in the 100,000 to 1 million coin denomination.

conclusion

The above observations confirm the return of bullish demand for ETH. However, the recent uptrend has also attracted some profit-taking and market participation remains low. In other words, investor confidence is improving but it is not enough for FOMO levels of buying pressure.

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