Ethereum is in high demand with 8 million ETH purchased between $1600 and $11650
ETH (the second-largest cryptocurrency in the world) has shown great strength during the market recovery. Since 2023, ETH has seen a more than 40% increase and is currently in a strong demand zone.
ETH trades 2.9% lower at $1627, with a market cap $199 billion. Recent activity suggests that $1600 could be a strong support for ETH in the future. Ali Martinez, a popular crypto market analyst, reported that he used data from IntoTheBlock.
The $1,600-$1,650 range represents a significant area for support for #Ethereum. Onchain data shows that 8.9 million addresses bought $ETH worth $1,600 to $1,650. #ETH has a good chance to advance as long as this critical demand wall is intact.
Courtesy of: SantimentETH is currently facing strong resistance at $1700. Any breakout above these levels could push the ETH rally even further.
Ethereum On-Chain User Activity Rises
Analytex has released data that shows that user activity on the Ethereum platform increased significantly over the month of January 2023. This has resulted in a surge in average gas prices on 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 states that the average daily number of active Ethereum wallets dropped 10% to 387 475.
Additionally, the daily Ethereum transaction data has dropped by 0.8% between December and January. For eight months, the average daily ETH transaction volume has been declining.
A recent spike in Ethereum user activity could also be due a rise in DeFi activity. The total value locked (TVL), across different decentralized financial protocols, soared in the last month of Jan 2023.
Due to the opening of withdrawals from Ethereum staking contracts in March 2023, the upcoming Ethereum Shanghai Hardfork is driving staking in DeFi. It will be interesting for the world to see if ETH can reach $2,000 at the Shanghai hardfork.
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