Ethereum, just like all other crypto assets, is feeling the heat brought by the dwindling crypto markets. The persistent Crypto Winter, which has brought the majority of digital assets to record lows, has once again ignited an unfavorable market condition for Ethereum: the number of active addresses holding ETH appears to have declined to a 2-year low.
ETH active addresses have not attained the 10M mark since mid-2021
As seen on a CoinMetrics chart, the monthly ETH dynamic addresses have recently sunk to 6M, which was last seen in June 2020 before the price rally of late 2021. Less than half the value peaked in May last year when active addresses reached a record 13M, following the ETH all-time high of $4k.
Nevertheless, as brought on by the fallen crypto markets of mid-2021, after the peak of 13M, ETH active addresses saw a sharp drop to 8M. There have been rebounds from late 2021 to early 2022, but dynamic addresses have not attained the 10M mark. The highest witnessed was 9M in March of 2022.
The decrease in active addresses indicates intense selloffs in the space, mainly due to the FUD pumped into the markets by the steadfast bear market. Many analysts are wondering what this new low could mean for Ethereum, seeing as the last time this was witnessed, ETH steadied at the $200-mark before ending the year at $737.
ETH market sentiments are not looking very good
Market sentiments are some of the major causes of a decrease in active addresses, and this is evident in ETH indicators, as seen on CryptoQuant. The ETH Coinbase Premium, which indicates buying pressure on the part of institutional investors in the U.S., is not looking very good. With a value of -13.9, there is an indication that buying pressure is relatively weak.
Additionally, investors in ETH funds and trusts have a weak buying sentiment, as indicated in a Fund Premium of -24. Furthermore, 50,470,712 long positions in the market were liquidated in the past 24 hours. This is likely to bring about further negative market sentiment.
After racking in some gains at the start of July in what appeared to be a brief forthcoming rebound from the lows of June, ETH has begun to dump further as we approach the end of the month. As of press time, the asset currently trades at $1,393, dipping by 8.57% in the past 24 hours, and by 10.39% in the past seven days.
