2024-05-11 19:03:35
- Ethereum fees hit a six-month low in the past seven days.
- ETH was down 6% and the metrics looked bearish.
As L2s become more popular, Ethereum [ETH] Network usage fell, reaching a six-month low.
This was in line with Vitalik Butarin’s 2020 roadmap, which aimed to improve scalability by offloading transactions from the mainnet.
Meanwhile, ETH bears entered the market and the price of the token dropped.
Ethereum network activity decreases
IntoTheBlock recently published a fog highlighting the fact that ETH fees fell to a 6-month low this week as they dropped over 29%.
The drop in ETH fees showed a shift in activity to more than 50 Tier 2 active networks To see what’s going on with Ethereum, AMBCrypto looked at Artemis details.
In particular, overall activity on the network has decreased, with daily active blockchain addresses decreasing last week.
Daily ETH transactions also followed a similar trend. Blockchain revenues also fell last week due to declining fees.
In particular, it was surprising to see a decrease in the use of blockchain when the price of gas fell. according to Y ChartsETH gas price dropped from 47.5 Gwei to 8.5 Gwei in the last month.
Ethereum is heading in a bearish direction
While blockchain network activity decreased, price action also turned bearish. According to CoinMarketCapThe price of ETH has fallen by more than 6% in the past seven days.
At the time of writing, it was trading at $2,920.99 with a market capitalization of over $350 billion.
AMBCrypto’s look at Glassnode data revealed a possible reason behind this price drop. We found that the number of ETH addresses with balances over $100,000 has dropped over the past seven days.
This clearly indicated that the whales were selling their possessions.
Not only the whales but also the sales mentality that dominated the market. Our analysis of Sentiment data noted that ETH exchange inflows doubled last week.
In addition, their supply on the stock exchanges increased. This led to a sell-off that could have triggered the price correction.
The negative price action also had a negative impact on market sentiment. Ethereum’s weighted sentiment has fallen over the past few days, suggesting that bearish sentiment around the token has prevailed.
AMBCrypto then analyzed ETH’s daily chart to see if a new price drop is likely.
We found that its Relative Strength Index (RSI) was below the neutral mark. Its cash flow index (MFI) also recorded a fall.
File Ethereum [ETH] Price forecast 2024-25
The altcoin king was resting below its 20-day simple moving average (SMA) at the time of this publication, indicating a fresh price decline.
The price of ETH touched the lower limit of the Bollinger Bands, which could trigger a trend reversal.
This is an automatic translation of our English version.
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