Ethereum Daily Active Addresses Show Growth Amid Price Correction

Ethereum Daily Active Addresses Show Growth Amid Price Correction

Despite recent corrections in the Ethereum (ETH) price, Ethereum's daily active addresses continue to rise, suggesting sustained interest and engagement within the network.

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?

Despite Recent Corrections, Daily Active Addresses Are Still On The Rise

From February 22 to March 11, the price of ETH witnessed a significant surge of 36.52%, with its daily active addresses simultaneously increasing from 449,000 to 545,000, highlighting a period of robust growth and engagement within the Ethereum network.

Traditionally, there has been a noticeable correlation between the number of active addresses on the Ethereum network and the price of ETH, suggesting that active network participation often mirrors price movements.

Ethereum NUPL Metric Fluctuates

The ETH Net Unrealized Profit/Loss (NUPL) metric has been oscillating between the 'Optimism — Anxiety' and 'Belief — Denial' states, suggesting that a significant portion of ETH investors perceive their holdings in a positive light.

This wavering between optimism and belief hints at the community's anticipation as they closely monitor price movements to strategize their next moves, potentially stabilizing prices through cautious trading behavior.

ETH Price Prediction: $3,000 Next?

The ETH price chart has revealed a significant movement: its short-term Exponential Moving Averages (EMAs) have recently dipped below the longer-term EMAs, with all converging near the current price level.

If this bearish trend happens, as suggested by the EMA lines, the ETH price could soon find itself testing the $3,000 mark, a critical support zone.