Ethereum On-Chain Metrics Are Weakening
Etheruem has undergone an extreme bounce since the lows seen in early September. Despite this, the blockchain’s on-chain trends are weakening.
Santiment, a leading blockchain analytics company, reported on October 11th that the number of daily active addresses on Ethereum is still in a “mild decline.” As can be seen, the metric has dropped by around 50% since topping during the rally in late July:
Chart of ETH's price action over the past few months with an daily active address overlay shared by Santiment, a blockchain analytics company.
It seems that this decline comes as many users have lost interest in certain aspects of the decentralized finance space.
Ethereum-based yield farming applications were fuel for an influx of users over the past few months. But with many turning out to be scams, unsustainable, or unprofitable for retail users, they may have stopped using them or are seeking opportunities on other blockchains.
Technical Trends Still Strong
Ethereum’s technical trends are strong despite the on-chain weakness.
Brave New Coin’s Josh Olszewicz recently noted that the Ichimoku Cloud on the weekly has flipped green, something that hasn’t been seen since late 2018. This suggests that the cryptocurrency is likely to perform “extremely well” throughout Q2 of 2021 and moving on from there:
Chart of ETH's price action over the past few years with analysis by crypto trader josh olszewicz (Carpenoctum on Twitter). Chart from TradingView.com
On a shorter-term basis, ETH is breaking above a falling wedge pattern, which is good for the bull case.
Photo by Ryan Clark on Unsplash Price tags: ethusd, ethbtc Charts from TradingView.com Ethereum's On-Chain Metrics Continue to Plunge Despite 20% Bounce
Originally from Bitcoinist.com https://ift.tt/36UljwV
Leading global blockchain news provider. A blockchain, originally block chain, is a growing list of records, called blocks, that are linked using cryptography.