With a drop of about 35% since the peak at $126,000, one might wonder if Bitcoin is still in a bull market. However, if a bear market were to set in, the price of Bitcoin could fall below $40,000. A scenario that would cause damage to altcoins, as well as Ethereum. ETH is currently trying to hold the $3,000 mark, and on-chain activity is starting to rise again. Here is the ETH bulletin!
The Ethereum price drops by 2.2% in 24 hours
ETH declines by 2.2% in 24 hours, but it maintains the psychological round number of $3,000 for now. The price of Ethereum also drops by 6% in a month and nearly 30% over the last three months:
ETH/BTC-0.3920%-0.1308%3.64%4.75%-11.95%43.53%
ETH/USDT-1.08%-2.25%3.83%-6.03%-27.34%24.44%
Ethereum's performance against different pairs. Source: Coincheckup
ETH has been fragile against the dollar for months, but it has outperformed Bitcoin in recent weeks. The ETH/BTC pair has risen by 3.6% in a week and 4.8% in a month.
The number of active addresses is exploding on Ethereum, good news for the price?
Between March and August, the number of active addresses skyrocketed. During the same period, the price of Ethereum managed to rise from $1,400 to nearly $5,000. However, between August and November, on-chain activity plummeted, just like the price of ETH which fell below $3,000.
Evolution of the number of active addresses on Ethereum. Source: The Block
However, since the end of November, the blue metric is rising again. This surge in on-chain activity seems to indicate a return of interest in ETH. Consequently, the price could benefit to rebound.
The support at $2,800 holds on ETH
ETH shows a bearish momentum on a daily basis since the peak around $5,000. However, the price is currently managing to maintain the support at $2,800:
Ethereum price against the dollar (1D) – source: Trading View
If the rebound continues, ETH could reach $3,500. It will be necessary to break this resistance to be able to return to the resistance at $4,000. To avoid another wave of decline on this asset, it will be necessary to stay above the support at $2,800. The RSI has just broken the bearish trendline in place for several months. The momentum is bullish on ETH on a daily basis.
On-chain activity is soaring on Ethereum, and the price is managing to stay above the support at $2,800. If the rebound continues, there are chances to see the second largest crypto capitalization around $4,000. Meanwhile, the Fusaka hard fork has been successfully deployed on the mainnet.
