This Could Happen If Ethereum (ETH) FOMO Occurs In Short Term

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CoinGape
10w ago2022-08-02

The average ETH gas fee continues to be very low despite price increase in recent times although there is still to be Ethereum FOMO. The shortfall in Ethereum (ETH) total circulating capacity has had an impact on the transaction fees. However, a wave of uncertainty and momentum in the network could alter the situation. The average ETH transaction per transaction recently dropped to under $1 despite ETH price increase.

Ethereum FOMO Incoming? Active Addresses Increasing

Meanwhile, the number of active addresses holding Ethereum is increasing at unprecedented levels. According to CryptoQuant communities, the metric on active addresses is on an all time high. But what is more interesting is that an analysis of historical data suggests that a local top is around the corner. A local top can be anticipated when the active addresses hit a spike above the 575K level.

“When we observe the historical data on Ethereum: Active Addresses, something what catches the eye is that everytime when Active Addresses spiked above 575K, it pointed a local top.”

This could lead to speculation that high number of active addresses could lead to a bullish environment. However, analysts indicate that the spike in active addresses could just mean an anticipation of the Merge. “It could indicate that a big amount of retail investors are hearing about the merge and seeing that ETH rose with 100% from bottom to top.”

Meanwhile, the ETH price suffered a minor blip on Tuesday before retracing back to excess of $16,000 level. As of writing, Ethereum price is trading at $1,668, up 1.07% in the last 24 hours and up around 20% compared to last week.

ETH Active Addresses Soaring Despite Price Decline

The ETH investor community continues to accumulate despite a price dip in the last few days. Whether the positive momentum among traders would pull ETH price back to recent highs remains to be seen. Last week, ETH went as high as $1,770 compared with $1,668 currently. “As per insights from Santiment, there is an increase in active addresses for Ethereum despite the price decline.”

Glassnode’s on-chain data suggests that the current transaction fees numbers don’t necessarliy reflect a bullish trend. In bull market environment, high fee rates are maintained, which is a sign of demand recovery. Also, the Bitcoin network is currently experiencing low network congestion, another sign of a bearish environment. Bitcoin price, on the other hand, shows improvement compared to last month. As of writing, Bitcoin price stands at $23,373, up nearly 11% compared to last week.

Anvesh reports major developments around crypto adoption and price analysis. Having been associated with the industry since 2016, Anvesh is a strong advocate of decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.