Summary
TLDR: Despite recent corrections in Ethereum’s price, Daily Active Addresses are still increasing, suggesting sustained interest in the network. This raises questions about the future of ETH price. NUPL data shows Ethereum in a ‘Belief – Denial’ zone, while EMA lines indicate potential consolidation or further correction. The divergence between price movement and network activity may lead to stabilized prices or additional corrections.
Key Points
1. Despite recent corrections in the Ethereum (ETH) price, Ethereum’s Daily Active Addresses continue to rise, suggesting sustained interest and engagement within the network. This contradiction between price movement and network activity raises questions about the immediate future of ETH price.
2. The move of ETH into the ‘Belief — Denial’ zone, as indicated by NUPL data, combined with EMA lines suggesting a potential phase of consolidation or further correction, poses a pivotal question: Will ETH price stabilize in a consolidation phase, or are we on the cusp of additional corrections?
3. Despite the price correction, Ethereum daily active addresses continued to climb, rising from 540,000 to 626,000 between March 14 and March 21. This divergence might imply that the Ethereum network’s increasing user activity and sustained engagement could potentially buffer against steep price corrections.