“Despite the current struggles of ETH, Ethereum’s milestone achievement of reaching 100 million addresses showcases the widespread adoption and growing interest in the platform’s potential, fueling optimism for its future success.”
The number of Ethereum addresses with a balance of at least one wei has crossed the 100 million mark, indicating increased accumulation of ETH by market players. This milestone suggests that more participants believe in the long-term potential of the altcoin. However, on-chain data reveals that the growth in addresses is not necessarily due to new entrants into the Ethereum network. Instead, it is likely that the increase is largely attributed to wallets that previously held ETH but have since withdrawn it.
One possible reason for this could be ETH’s recent performance. While the coin has seen a 6.93% growth in the last seven days, it has not been able to match the performance of Bitcoin and other altcoins like Solana, Polygon, and Chainlink, which have outperformed ETH.
Looking at the technical status, the ETH/USD 4-hour chart shows that the altcoin faced rejection as bulls attempted to push it past $1,700. However, the overall market structure remains bullish, with support gathered at $1,563. Despite this, it is likely that ETH may not continue its uptrend without a retracement, possibly to $1,650. The Relative Strength Index (RSI) indicates that ETH was oversold, suggesting a potential price reversal that may go lower.
However, the Directional Movement Index (DMI) suggests that any decline in ETH’s value may not last long. The +DMI (green) significantly outweighs the -DMI (red), indicating that bulls are in control of the market. The Average Directional Index (ADX) also supports this trend, with a high value indicating strong upward direction.
In conclusion, while the number of Ethereum addresses with a balance has surpassed 100 million, indicating increased accumulation and faith in the altcoin, ETH may face a critical period in terms of its price performance. A potential retracement to $1,650 is possible, but a recovery may not take long due to the strong bullish market structure and direction.