Ethereum Dominates with 40% of Active Addresses Across Networks – Will Price Follow?

• Ethereum has surpassed 5 million active addresses across its mainnet and Layer 2 networks, capturing over 40% of all active addresses in the crypto landscape.
• One renowned crypto analyst, PeterBrandt has come forward asserting that Ethereum is on the verge of a bullish trend reversal.

Ethereum, the second largest cryptocurrency by market cap remains its stronghold in the cryptocurrency landscape. This has been evidenced after the digital asset recently surpassed 5 million active addresses across both its mainnet and Layer 2 networks. 

Despite these impressive metrics which highlight the token’s increased utility and adoption, its native token ETH is yet to match this performance. As of time of press, ETH is swapping hands with $2,617.67 marking a 2.07% and 2.31% decline in the daily and weekly charts. Meanwhile, on the monthly charts, the digital asset is up 1.75%.

 According to data from the IntoTheBlock , Ethereum is leading the charge in the cryptocurrency space, boasting more active addresses than its competitors on both Layer 1 and Layer 2 platforms. As of this month, Ethereum has registered over 5 million active addresses.

The rise in active addresses is largely driven by the increasing adoption of Ethereum’s Layer 2 networks, such as Arbitrum and Optimism, which are enhancing Ethereum’s scalability and lowering transaction costs. These L2 solutions have contributed significantly to the overall growth, propelling Ethereum to capture more than 40% of all active addresses across networks.

If Ethereum can maintain this momentum, with continued adoption of Layer 2 networks and strong staking participation (over 34 million ETH currently staked), there is potential for the price to catch up to its on-chain growth.

Ethereum Technical Analysis

Technical analysis shows that Ethereum has been fluctuating within a narrow range between $2,600 and $2,670, with support near the 50-day moving average of $2,485. Additionally, the Relative Strength Index (RSI) is at 57.19, indicating neutral market momentum, while the Average True Range (ATR) of 96.16 points to only a minor increase in volatility.

Analyst Confirms ETH Bullish Trend Reversal

One renowned crypto analyst, Peter Brandt has come forward with a bullish prediction for the digital asset. Highlighting ETH price as “the most interesting chart developments I see right now” stated that Ethereum is on the verge of a bullish trend reversal. In essence ETH is likely to experience a significant upward price movement after a period of decline.

The most interesting chart developments I see right now
See thread
#1 $ETH closing price chart inverted H&S pattern
I am flat in ETH pic.twitter.com/OCG0GcTdxF

— Peter Brandt (@PeterLBrandt) October 21, 2024

Taking to the X platform, Peter Brandt pointed towards a developing Inverted Head and Shoulders (H&S) pattern on Ethereum’s daily chart, suggesting a potential bullish breakout for the cryptocurrency. The formation consists of a lower low (the “head”) surrounded by two higher lows (the “shoulders”).

If Ethereum can break above the neckline of the H&S pattern, currently at $2,745, it could signal a sustained upward movement. The cryptocurrency briefly touched above this level earlier today, reaching a new daily high of $2,765.