Investors of Ethereum [ETH] appreciated the cryptocurrency’s remarkable ascent over the last two weekends. Owing of the increase in value, demand for the altcoin king surged dramatically even as the price reached $1,800.
But, there is one aspect that could have an impact on the ETH that may have gone unreported. Fortunately, Santiment noted it in a tweet on March 20. According to the on-chain analytic platform, Ethereum transaction rates have dropped below $2 as demand has increased.
According to platform data, the average charge reached a Year-To-Date (YTD) high of $4.26 on 14 February. At the moment, the price of ETH was roughly $1,670. Yet, the aforementioned decline occurred prior to the press time value of $2.82.
Such a scenario could lead to increasing investor participation and possible accumulation. Santiment went on to say that maintaining this cost range was a strong sign for ETH to reach $2,000. The cryptocurrency last hit such heights in May 2022. Is there a risk that this may happen again sooner rather than later?
Given Ethereum’s network growth, this could be a challenge. This was deducted from the metric’s dramatic fall to 32,200. The number of new addresses established on a network is represented by network growth. As a result of the drop, ETH was not gaining momentum among newcomers to the crypto industry.
But, in the previous seven days, current network members took it upon themselves to enhance involvement. This was due to the fact that active addresses had climbed to 2.1 million at the time of writing. This invariably verified that the increasing demand was more likely among short- to long-term holders, rather than newly formed wallets.
Apart from the trend shown by active addresses and network activity, ETH may yet have a chance to reach the milestone. Seller burnout is one statistic that supports the concept.
The indicator calculates the profit percentage of supply in relation to the 30-day price volatility. The metric can identify potential bottoms using both parameters. The seller fatigue constant had climbed to 0.033 at the time of publication. This indicated a decrease in the number of merchants eager to sell. As a result, ETH had the potential to rise even further.
Furthermore, Glassnode’s data revealed that pure ETH transactions, shown by the pink color below, dominated network gas utilization. According to the graph below, NFT transactions and ERC-20 bridges over the Ethereum blockchain trailed it. While this supreme may have a good short-term influence on the ETH price, various other aspects must be considered.
