Ethereum’s price fell below $415 recently, and in doing so, it took the crypto-asset lesser time than it took when it was looking to climb that elusive range. While the crypto-asset was back above $400 at the time of writing, the latest price collapse in ETH’s value was far from surprising.
Only a week ago, when Ethereum’s price was hovering under the $400 range, it had been highlighted that in spite of it having a positive hashrate and higher miner revenues, there was a lot of contradiction with respect to Ethereum’s daily active addresses.
In light of that situation, Santiment recently opined that,
“The expected pullback for Ethereum and Altcoins we’ve been mentioning has begun to come to fruition.”
Opposing metrics shouldn’t be ignored
Last week, AMBCrypto reported on the facts that clearly highlighted the repercussions of falling Daily Active Addresses for Ethereum, coupled with a rise in price.
Just because Ethereum had an upper hand and enjoyed a favorable position in a few metrics did not make up for active addresses declining in the market since they define the number of users coming into the ecosystem.
Source: Coinmetrics
Right now, active addresses of Ethereum are continuing to decline, as illustrated by the attached chart. Interestingly, during the entire period when Ethereum registered an incline in valuation, the Unique address count steadily dropped, stating the obvious and underlining what was perceived a week back as well – Ethereum’s rally was not based upon strong fundamentals.
In the meantime, it is also unfair and possibly inaccurate to state that Ethereum will only go down from here. What needs to be monitored is whether active addresses are able to carve their way back up or not to support the median price of the crypto-asset.
While prices falling down to the equivalent of Ethereum’s DAA levels would be the beginning of an organic price rise, more and more divergence will continue to build more selling pressure on Ethereum’s end – Ergo, more “unsurprising” pullbacks.
