Price Halved, Users at All-Time High…What's Happening with Ethereum?

▲ Ethereum (ETH), Decline/AI Generated Image ©

Despite its price being halved, Ethereum is showing 'hidden bullish signals' as its user base has reached an all-time high.

According to the cryptocurrency specialized media Bitcoinist on April 28 (local time), Ethereum (ETH) recently recovered to $2,300 and is attempting to break through the $2,400 resistance. However, analysis by CryptoQuant suggests that the current price does not fully reflect the network's actual demand.

The key indicator is active addresses. Ethereum's 100-day moving average of daily active addresses has reached an all-time high of approximately 587,000. This represents the highest level of network participation in history, not just a simple cycle peak. In contrast, the price is more than 50% lower than its peak in October last year, and the divergence between the two indicators has expanded unprecedentedly.

In the past, an increase in active addresses and price increases showed a strong positive correlation, but currently, that relationship has significantly diverged. In a typical bear market, price and network activity tend to decrease together, but this time, the opposite trend is observed: network usage is increasing while the price is falling.

This is interpreted as similar to a situation where a company expands its customer base even during an economic downturn. When network demand increases but the price fails to follow, historically, the price tends to converge towards catching up with demand in the long term.

Technically, it is still a transitional phase. Ethereum has rebounded from below $1,800 and is stabilizing around $2,320, but the 50-week and 100-week moving averages are acting as upper resistance. The 200-week moving average maintains an upward trend, serving as a long-term support. For a bullish reversal, an analysis suggests that the 100-week moving average must be reclaimed.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*