Ethereum

<ul class="wp-block-list">
 <li>7,728 ETH ($20M) added to circulation in past week.</li>
 <li>Network activity drops 3%, with 43% decrease in fees.</li>
 <li>Price targets: potential drop to $2,264, or rally to $3,336 if demand increases.</li>
</ul>
<a href="https://thenewscrypto.com/?s=Ethereum" target="_blank" rel="noopener noreferrer nofollow">Ethereum’s</a> circulating supply has reached a significant milestone, hitting a six-month high of 120.39 million <a href="https://thenewscrypto.com/?s=Eth" target="_blank" rel="noopener noreferrer nofollow">ETH </a>following the addition of 7,728 tokens worth over $20 million.
This substantial increase in available tokens raises questions about potential price implications, particularly if market demand fails to match the growing supply.
The surge in circulating supply coincides with a notable decline in network activity on Ethereum’s Layer 1 blockchain. Data from Artemis reveals a 3% drop in daily unique on-chain interactions over the past week, accompanied by a dramatic 43% reduction in network fees.
This decrease in transaction volume and fee revenue suggests waning network usage, potentially impacting ETH’s market value.
<h2 class="wp-block-heading" id="h-where-s-ethereum-headed-next">Where’s Ethereum headed next?</h2>
Network activity serves as a crucial indicator of Ethereum’s ecosystem health and demand for the native token. The recent decline in daily transactions signals reduced platform engagement, which could exert downward pressure on ETH’s price.
<figure class="wp-block-image size-large"><img decoding="async" width="1024" height="478" src="https://thenewscrypto.com/wp-content/uploads/2024/10/image-62-1024x478.png" alt="" class="wp-image-111552" srcset="https://thenewscrypto.com/wp-content/uploads/2024/10/image-62-1024x478.png 1024w, https://thenewscrypto.com/wp-content/uploads/2024/10/image-62-300x140.png 300w, https://thenewscrypto.com/wp-content/uploads/2024/10/image-62-768x359.png 768w, https://thenewscrypto.com/wp-content/uploads/2024/10/image-62.png 1536w" sizes="(max-width: 1024px) 100vw, 1024px">
 <figcaption class="wp-element-caption">
 Source:&nbsp;<a href="https://app.artemisanalytics.com/" target="_blank" rel="noopener noreferrer nofollow">Artemis</a>
 </figcaption>
</figure>
This relationship between network usage and price action has become evident in recent days, with ETH experiencing a 3% decline despite broader market influences.
Currently trading at $2,619, Ethereum hovers precariously above critical support at $2,579. The combination of increased supply and decreased network activity creates a challenging environment for bulls attempting to maintain this support level. Should current trends persist, ETH could potentially retrace towards the next major support at $2,264.
However, the situation isn’t without potential upside. A revival in network activity could stimulate renewed demand for ETH, potentially catalyzing a price recovery. Under such circumstances, Ethereum could target the $3,336 level, representing a significant recovery from current valuations.

Ethereum Supply Surge Hits 6-Month High: $20M Worth of ETH Enter Market

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