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Ethereum (ETH) Is Safe Until It Sustains This Level

Ethereum (ETH) Is Safe Until It Sustains This Level

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The world’s second-largest cryptocurrency Ethereum (ETH) has come under severe pressure recently. On Wednesday, July 14, the ETH price dropped under its crucial support of $2000. At press time, ETH is trading at 1.71% down at a price of $1927.

We can’t say whether if the downside is limited from here, however, $1800 remains a key level to watch for at the downside. On-chain data provider Santiment reports: “For now, as long as the $1800s hold, we’ve got a chance to make it back towards the $2200s to test the resistance trendline”.

Ethereum dropped 16% after breaking the rising wedge last week. It has once again bounced back a bit from this week’s bottom and is trying hard not to fall to its previous support levels of $1700.

On-chain Metrics for Ethereum

One of the concerning things for ETH investors is that its network growth is on a downtrend. Although there are a few occasional spikes, they aren’t sustaining for long. To establish a stronger bull case, we need to see the reversal in the network growth resuming back to the north.

Looking at the positive side, the daily active addresses have remained healthy so far. Since the beginning of 2021, an average of 400K active addresses have been interacting with the Ethereum network.

At the same time, the ETH supply at the exchanges has been on a decline. This is a good sign as it helps to reduce the sell-side pressure. This declining trend could be the trigger for a positive outlook in the future.

Ethereum Network Settlements Spike

On Wednesday, July 14, crypto research platform Messari released a report wherein it stated that the Ethereum blockchain settled $2.5 trillion in transactions during the second quarter of 2021. This was a massive 65% surge over the previous quarter and a 1500% surge YoY. Messari noted that Ethereum could be settling a massive $8 trillion by the end of 2021.

In Q2 2021 Ethereum settled $2.5 trillion in transactions.
This represents +65% QoQ and +1,490% YoY, and puts Ethereum on pace to settle $8 trillion in 2021. pic.twitter.com/w97YSdwIgo
— Ryan Watkins (@RyanWatkins_) July 14, 2021

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

About Author

Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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