Activity on the Ethereum network has been declining over the past seven days, with a decrease in the number of addresses. This drop comes at a crucial time as Spot Ethereum ETFs are set to start trading soon. The decrease in active, new, and zero-balance addresses indicates a decline in user engagement and growth on the network.
The Exchange Supply Ratio, which measures the ratio of coins reserved in exchanges to the total ETH supply, has been falling. This suggests that holders are comfortable holding onto their assets, reducing the risk of a sell-off and potential price drop.
Traders are not confident in ETH, as evidenced by a drop in Ethereum’s Open Interest in the derivatives market. This metric indicates a decrease in speculative activity, with traders closing existing positions and withdrawing money from the market.
Despite these challenges, there is still potential for a bull run if buying pressure increases. If ETH’s price can surpass $3,600, it may continue climbing towards $4,000. However, if open contracts increase and buying pressure remains low, the price of ETH could decline further.
In conclusion, the current trends in Ethereum’s network activity and trader sentiment suggest a cautious outlook for the cryptocurrency. Investors should closely monitor these metrics to assess the potential direction of ETH’s price in the coming days.