The second largest cryptocurrency in the world, Ethereum (ETH), has shown great strength during this market recovery. Since early 2023, ETH is up more than 40% and is currently in a strong demand zone.
At the time of writing, ETH is trading 2.9% lower at a price of $1627 and a market cap of $199 billion. The recent activity shows that $1600 could serve as strong support for ETH going forward. Citing data from IntoTheBlock, popular crypto market analyst Ali Martinez reported:
Note that the $1,600 – $1,650 level represents a significant support area #Ethereum. Data from Onchain shows that 1.94 million addresses bought 8 million $ETH between $1,600 – $1,650. As long as this major wall of demands holds, #ETH has a good chance of progressing.
ETH is currently facing strong resistance at $1,700. However, any breakout above these levels could help propel the ETH rally further.
Ethereum On-Chain User Activity Jumps
According to a data report from Analytex, user activity on the Ethereum platform increased significantly in the last month of January 2023. This has ultimately translated into the rise in average gas prices on the Ethereum blockchain network.
Calculated in gwei, the smallest Ethereum denomination, the average gas price increased by 29.27% in January 2023 compared to the previous month. The report also adds that the average number of unique active Ethereum wallets per day dropped by 10% to 387,475.
In addition, there is a drop in daily Ethereum transaction data of 0.8% from December to January. Average ETH transactions per day have been declining for eight months now.
Thanks to: Analytex
The recent increase in user activity on Ethereum may also be due to a recent surge in DeFi activity. The total value locked (TVL) across various decentralized finance protocols has surged in the last month of January 2023.
The upcoming Ethereum Shanghai hardfork is also driving staking in DeFi due to the expected opening of withdrawals from the Ethereum staking contracts in March 2023. It will be interesting to see if ETH can rise to $2,000 by the time of the Shanghai hardfork.
Bhushan is a FinTech enthusiast and has a good flair for understanding financial markets. His interest in economics and finance draws his attention to the new emerging Blockchain Technology and Cryptocurrency markets. He is in a continuous learning process and keeps himself motivated by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and sometimes explores his culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
This post 1.94 million Ethereum addresses make strong purchases at $1600
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