🔹 Ethereum's Active Addresses Surge: Will Price Follow?
📊 Ethereum [ETH] is currently leading among Layer 1 (L1) and Layer 2 (L2) platforms in terms of active addresses. As of October 2024, there are over 5 million active addresses recorded across the Ethereum mainnet and its L2 networks. This growth is a significant indicator of Ethereum’s increasing dominance in the blockchain space.
📈 An analysis from IntoTheBlock shows that Ethereum is outpacing other networks in growth, with a notable rise in daily active addresses. Ethereum now holds a dominant position with its share of active addresses exceeding 40%. This surge is driven by the development and adoption of L2 networks like Arbitrum and Optimism.
💰 However, despite this increase in active addresses, Ethereum’s price movement has been modest. As of October 22, 2024, Ethereum is trading at $2,642, marking a slight decline of 0.85% in the last 24 hours. The price has been fluctuating within the $2,600 to $2,670 range, finding support near its 50-day moving average of $2,485.
📉 The Relative Strength Index (RSI) currently sits at 57.19, indicating neutral market momentum, while the Average True Range (ATR) of 96.16 shows a small uptick in volatility. These indicators suggest that external market factors and broader investor sentiment are playing a larger role in determining price action.
🚀 The increase in active addresses highlights Ethereum’s expanding ecosystem and growing demand. If Ethereum can maintain this momentum with continued adoption of Layer 2 networks and strong staking participation (over 34 million ETH currently staked), there is potential for the price to catch up to its on-chain growth.
⚠️ However, despite these positive signals, ETH’s price remains cautious. Technical indicators point to mixed signals, suggesting that while ETH’s network is flourishing, the market may be waiting for stronger catalysts to drive the price higher.
