Ethereum (ETH) network growth has been on the rise over the past few weeks. The creation of new addresses on the blockchain has accelerated, which could be a signal of eventual market cap growth.
Ethereum’s network growth hit a 4-month high. The increase in new addresses is a bullish divergence as ETH’s price struggled to overcome the $2,000 resistance level during the same period.
The price of the altcoin leader reached $1,860.96 after rising 3.06% in the past 24 hours. This negative daily performance also managed to push ETH’s weekly performance into the red. As a result, the cryptocurrency is down 1.36% in the past 7 days.
Looking at ETH’s daily chart, the altcoin’s price fell below the crucial 50-day moving average over the past 24 hours, dropping to a low of $1,826.00. However, the bulls did provide ETH with a much-needed boost, causing it to trade above the technical indicators.
Nonetheless, there is still a chance that ETH’s price could drop to the next major support at $1,777.83 within the next 24-48 hours. This bearish thesis would be confirmed if the altcoin’s price breaks below the 50-day EMA once again.
On the other hand, if the price of ETH can close above the 20-day EMA within the next 48 hours, it could retest the $1,900 resistance level within the next few days. However, investors and traders will need to monitor the 9-day and 20-day EMA lines as these two technical indicators are looking to cross over.
If the 9-day EMA crosses below the 20-day EMA, it will suggest that ETH is entering a short-term bearish cycle. Therefore, it will invalidate the bullish thesis, and the cryptocurrency could drop to the mentioned $1,777.83 mark.
