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- 1 The daily ETH/USD chart highlights the formation of an interesting chart pattern.
- 2 Ethereum crypto has been under selling pressure for the last couple of weeks
- 3 A breakdown could expand losses, dragging the price to the $3300 level.
Ethereum price seemed to be retreating from the highs in the last couple of weeks. The bears seemed to be returning back after a short bull run. The broader crypto market also seemed to be cooling down in the 1st half of last month.
However recent sessions showed that Ethereum price was stabilizing near the 50 day Exponential moving average. Also, the daily chart witnessed the formation of an interesting pattern. At the time of writing, ETH was hovering close to the $3507 mark, having recorded a moderate gain of 0.40%.
Furthermore, analysts assumed one more dip before a possible breakout from the correction phase. Also, there has been a significant development in the daily active addresses in the recent sessions.
Ethereum Crypto: Daily Active Address on the Rise!
Ethereum price saw an almost 7% drop in the price this month which may increase if the bearish pressure extends. Despite the price drop, there has been a significant development in the active addresses count in the recent sessions.
As per the data obtained by app.santiment.net, the daily active addresses and 7-day active addresses count have reported a positive growth despite the price drop. The daily active address count has increased from 400.8K in the 1st week of June to 468K. On the other hand, the 7 day active address count has jumped from 21.8 million to 2.47 Million.
The active address count reveals the number of unique addresses which are involved in the transactions over a given period of time. An increased count in the active addresses generally indicate a possible price surge.
Analysts Anticipate Another Dip in ETH!
The daily ETH/USD chart highlights the formation of a symmetrical triangle pattern with the price currently resting near the psychological $3500 level. Any breakdown could further drag the price towards the next major supply of $3300.
On the contrary, if the price surpasses the upper trendline resistance of the pattern, it may indicate a breakout from a correction phase. On the higher side, the bulls may surpass the upper levels of $3700 and $3800.
The RSI and the 14 day SMA line are below the mean line, indicating weakness on the chart.
Conclusion
Ethereum price has been declining in the last couple of weeks, however, the number of daily and weekly active addresses has risen, suggesting increased network activity which could hint at a future price increase.
Moreover, the ETH/USD chart shows the formation of a symmetrical triangle pattern, with the price near the key $3500 level. A drop below this could lead to a decrease towards $3300, while a rise would signal an end to the correction phase and a potential increase towards $3700-$3800. The RSI and 14-day SMA indicators highlight market weakness, as both fell below the mean lines.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
