Ethereum

Long

bullish

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Ethereum has experienced a 2% decline over the past week, with a key resistance at $2,850 indicating potential recovery.</li> 
 <li>On-chain data reveals an increase in active addresses, suggesting renewed interest and potential price stabilization.</li> 
</ul> 
Ethereum [ETH], the world’s second-largest cryptocurrency, has been experiencing a downturn that started in August and has continued into September. 
At the time of writing, ETH was trading at $2,338, marking a 1.3% decline in the last 24 hours and a 2% drop over the past week. 
<h2 id="long-road-ahead">Long Road Ahead</h2> 
Dean Crypto Trades, a renowned crypto analyst, recently shared his views on Ethereum, suggesting that the downward trend could persist for some time. 
In a recent post, the analyst stated that Ethereum has seen a solid bounce from support so far, but he believes it will continue to be choppy while the price is trading within the $2,100-$2,850 range. 
He further emphasized that the key resistance level for Ethereum is $2,850, stating that while there may be a path to recovery, it could take time before Ethereum can break free from its current trading range and regain bullish momentum. 
<h2 id="assessing-ethereum-s-fundamentals">Assessing Ethereum’s Fundamentals</h2> 
Despite the bearish sentiment in Ethereum’s price action, some underlying metrics provide a glimmer of hope for potential recovery. 
One important factor to consider is the level of retail interest in the network. 
Data from Glassnode shows that Ethereum’s active addresses peaked at over 589,000 on the 14th of August, but have since seen a significant decline, dropping to as low as 377,000 by the end of August. 
However, since the start of September, there has been a steady recovery in active addresses, which now stand at over 438,000. 
This increase in active addresses could indicate renewed interest from retail investors, potentially supporting the asset’s price in the coming weeks. 
The rise in active addresses often correlates with increased network activity, which, in turn, can help drive demand for ETH and support price levels. 
Another fundamental metric to consider is Ethereum’s exchange supply ratio, which measures the percentage of the total ETH supply held on exchanges. 
According to CryptoQuant, this ratio currently stands at 0.141 as of today. 
A lower exchange supply ratio generally suggests that investors are moving their assets off exchanges and into cold storage, indicating that they are less likely to sell in the short term. 
This could reduce the selling pressure on ETH, allowing for more price stability. However, it is also essential to monitor this metric closely, as any significant shift could signal a change in market sentiment.

Challenges for Ethereum: The Struggles Behind Reaching $2,850 Mark

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CoinEagle.com

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