The price of Ethereum is more than 80% below the all-time high which is above $1,400. Ethereum is still bearish on a macro scale. However, traders did not stop flooding the network.
According to the data, the usage of the network is beginning to arrive at the highs seen at the peak of 2018’s bubble. Nevertheless, analysts say that Ethereum’s price is unlikely to follow.
Number of Active Ethereum Addresses Heightens
The latest blockchain data suggests that traders are motioning aside the indecisive price action.
Santiment, a blockchain analytics firm reported on June 29 that the number of addresses dealing with the network has attained two-year highs.
Anthony Sassano, a prominent ETH proponent also shared data from another firm in Santiment’s sector, Glassnode, saying the same.
This growth in Ethereum, it seems, is because of decentralized finance (DeFi). The extremely high yields offered by ETH-based protocols caused many users wanting to capitalize on these trends.
Analyst Taha Zafar said that coins related to DeFi also heightened. Moreover, many altcoins on Ethereum are up hundreds of percent in the last few weeks.
These trends are attracting users from across the crypto space. On the other hand, Bitcoin and ETH are effectively flatlined.
Ethereum’s Price is Still Bearish
Despite the on-chain growth, Ethereum is currently in a bearish condition.
A trader posted a chart showing that Ethereum could plunge to $120 if it slides slightly lower. It would then mark a 55% correction from the current prices.
Teddy, an analyst also shared that Ethereum’s four-hour chart is “inches away” from showing a bearish trend signal. He further stated that if this would happen, this would be the first time since March 10, just days before the crash to $85.
The recent hike in the usage of the network brought high fees. Qiao Wang, a former Messari executive, said that he changed his mind after using numerous DeFi platforms.