Ethereum tops in active addresses: Will this spark a move beyond $2800?

Ethereum tops in active addresses: Will this spark a move beyond $2800？

Since hitting a local low of $2,379, Ethereum [ETH] has experienced significant gains on the price charts.

The altcoin has also attempted to clear the previous losses to reach a high of $2721.

The recent uptrend may be driven by increased on-chain activities, according to IntoTheBlock. As such, ETH has surged in addresses, outpacing most other altcoins.

Ethereum leads in active addresses

According to IntoTheBlock, Ethereum is currently leading in address dominance. As such, the altcoin leads active addresses by 43%.

Source: X

Amidst this growth, Tron is second with a 27% address dominance, which also signals its growing user base.

Other coins like Tethers USDT and Toncoin follow with significant engagement in transactions.

Ethereums dominance is the reflection of strong network activity and adoption, which is central to a further price rally. Usually, price rises as market fundamentals strengthen.

This analysis indicates that Ethereum is currently the most active blockchain in dApps, DeFi, and NFT suggesting a sustained demand and interest.

Can ETH finally rally？

In most cases, a surge in active addresses leads to higher prices. This has been witnessed over the past week. As such, the prevailing market conditions could set ETH for more gains on price charts.

Source: Cryptoquant

For starters, Ethereums Exchange Supply Ratio has declined to hit a monthly low in the past week. This has dropped from a high of 0.145 to 0.141 signaling increased accumulation.

Thus, investors are withdrawing their assets from exchanges to store them in cold wallets, signaling market confidence.

Source: Santiment

Additionally, Ethereums MVRV Long/Short difference has remained negative over the past week.

This not only shows that long-term holders are confident with the altcoins prospects but also signals the accumulation phase.

What next for Ethereum

According to AMBCryptos analysis, Ethereum was currently building a strong upward momentum.

This strong uptrend is evidenced by a declining ADX, while +DI had increased to 26.

Source: Tradingview

In fact, at the time of writing, Ethereum was trading at $2643. This marked a 3.74% increase over the past week.

Read Ethereums [ETH] Price Prediction 2024–2025

As expected, a rise in active addresses shows increased demand for the altcoin. As such, if they continue rising, and strengthen its fundamentals. ETH will experience more gains.

Therefore, with a strong uptrend, Ethereum is well-positioned to challenge the $2800 resistance level.