Summary Ethereum network shows growth despite recent market price decrease. Increasing user participation or diverse use cases contribute to network's stability. Consistency in transaction volume, active addresses, and gas usage indicate resilience and community engagement. Investment Thesis Ethereum ( ETH-USD ) network has been stable while its market price has decreased. We are not likely to see volatility in ETH future market in short term. On-Chain Data Shows That Ethereum Network is stable The network appears to be doing well when looking at Ethereum's distinct address chart and seeing a consistent rise in the total number of unique addresses over time. The growing number of addresses in the Ethereum network suggests continued development and adoption despite price swings. Several factors could contribute to this phenomenon: Increasing User Participation: As the number of addresses rises, it appears that more people or organizations are using the Ethereum network, either as users or as components of smart contracts and decentralized apps (DApps). Diverse Use Cases: The Ethereum blockchain can be used for a number of purposes, including non-fungible tokens ( NFTs ) and decentralized finance (DeFi). Users with a range of needs are drawn to the numerous applications, which supports overall growth. Long-Term Confidence: The growth of unique addresses amid price declines might be interpreted as a sign of long-term confidence in the potential and usefulness of the Ethereum network, which goes beyond transient market swings. The total number of Ethereum unique addresses does not affect ETH price directly but it suggests that the network is growing. The chart shows the total distinct numbers of address on the Ethereum blockchain and the increase in the number of address daily. (etherscan) The slight decline of the daily transaction volume on the Ethereum network is indicative of transaction activity. That is a negative indication of the system's resilience and its market price because ETH daily transaction volume has positive correlation with its price. This is frequently taken into account while assessing the network's strength and scalability. However, the rise in ERC20 token transfers may indicate that investors and consumers are enthusiastic about the projects and markets that are built around the ERC20 token standard. This could have to do with the advancement of initiatives and software developed on the Ethereum platform. These metrics demonstrate a lively and constructive community within Ethereum, which is crucial for the network's and its ecosystem's growth and success. However, we should also notice that the increase in token transfer would be a sale off on the network which can potentially make the market price drop further. The chart highlights the total number of transactions on the Ethereum blockchain with daily individual breakdown for average difficulty, estimated hash rate, average block time and size, total block and uncle block count and total new address seen. (etherscan) The chart shows the number of ERC20 tokens transferred daily. (etherscan) The number of active Ethereum addresses has gradually decreased since 2021. This is not a good sign for ETH because Ethereum active addresses and its market price has a positive correlation. However, an encouraging indicator is the consistency of the quantity of ERC20 addresses. This consistency is frequently a result of the persistence and engaged usage of the Ethereum network by its user base. The reliability and durability of the system may be indicated by a steady number of active addresses. Additionally, it serves as a gauge of how frequently and enthusiastically the user base uses the Ethereum network to conduct projects and transactions. One crucial indicator of community engagement and platform utilization on Ethereum is the consistency of the quantity of ERC20 addresses. The Active Ethereum Address chart shows the daily number of unique addresses that were active on the network as a sender or receiver. (etherscan) The ERC20 Address chart shows the daily number of unique addresses that were active on the network as a ERC20 token sender or receiver. (etherscan) Notable is the daily amount of pending transactions on the Ethereum network, which is kept at a steady 150k. A steady amount of pending transactions indicates that the network is meeting demand for transactions and is not going over capacity. To ensure prompt and effective processing, avoid network congestion, and preserve a good user experience, there must be a steady amount of pending transactions. It shows that there are no appreciable delays or backlogs in the Ethereum network's ability to handle the transaction load. A consistent amount of pending transactions signifies the resilience of the network and its capacity to manage transaction load efficiently, hence augmenting the overall dependability of the Ethereum network. This dashboard tracks the average number of pending transactions per day on the Ethereum network. (etherscan) One noteworthy finding is the concurrent rise in Ethereum's daily gas consumption. The amount of computing work or resources needed to process transactions and carry out smart contracts on the Ethereum network is measured by gas utilization. An increase in daily gas usage could imply several things: Growing Activity: The Ethereum network may be being used by more people or decentralized applications (DApps), which would raise the need for processing power. Complexity of Transactions: It's possible that as smart contracts or transactions become more complicated, they need more processing power, which in turn uses more gas. Network Upgrades or Changes: Upgrades or modifications to the protocol may have an effect on how much gas is used. The Ethereum Daily Gas Used Chart shows the historical total daily gas used of the Ethereum network. (etherscan) It is essential to monitor the correlation between the amount of outstanding transactions and the daily gas use. A steady stream of pending transactions is a good thing, but a steady rise in gas use points to a vibrant ecology. It is imperative to guarantee that the network can withstand the heightened demand without sacrificing the speed or efficiency of transactions. The rise in Ethereum's daily gas consumption highlights the dynamic character of the Ethereum ecosystem by pointing to increased network activity or complexity. However, Ethereum has no advantage regarding transaction fee in comparison to other blockchains. Market Activity Is Not Very Intense The observation that ETH open interest has increased and then traded sideways over the past two weeks is notable. Taking a closer look at the long and short volumes, both have experienced significant decreases during this period. Meanwhile, USD interest and ETH interest have remained stable. This indicates that the market sentiment is not overly optimistic, and future traders are exercising caution in opening new positions. Consequently, the ETH price is less likely to exhibit volatility in the short term. This is because there will be less long and short liquidation which directly has effect on the market price. ETH Open Interest (datamish) ETH Long Position and USD Interest Rate (datamish) ETH Short Position and ETH Interest Rate (datamish) Looking at Ethereum's price chart, we see that price has formed the falling wedge. The price action has a strong support at $1,400 when encountering another resistance at $2,400. So, ETH price would likely trade within the rectangle of $1,200 - $2,400 until there is a catalyst for a break up or down. Falling wedge suggest Ethereum price could go up further. (Tradingview) In conclusion, the Ethereum network has expanded despite a recent decline in its market value. In addition, ETH open interest indicates that market activity is not very intense which makes Ethereum price tends to be not volatile in short time. Therefore, I rate "hold" for Ethereum at the moment.
