User activity on the Ethereum (ETH) network continues to decline, indicating a decrease in demand for this layer-one blockchain. On Monday, the daily active addresses and new Ethereum wallets reached their lowest levels this year, showing a significant decrease in network interactions. According to Glassnode data, the number of active addresses in Ethereum transactions has dropped to the lowest annual level, reaching 361,078 addresses. This trend signifies a decline in user participation and activity on the network, which can lead to a decrease in transaction fees, reduced amount of Ethereum burned, and consequently, increased inflationary pressure on this asset. Additionally, the demand for new Ethereum has also decreased. The number of new wallets created for Ethereum transactions on Monday was 86,539, the lowest amount since the beginning of the year. This decrease in network activity has intensified the inflationary pressure on Ethereum and increased its circulating supply to over 120 million units. In the past 30 days, 71,172 Ethereum units worth over $135 million have been added to the circulating supply. The decline in network activity and demand in recent weeks has led to a decrease in the price of Ethereum as well. Currently, this cryptocurrency is trading around $1,907, reflecting a 30% decrease in the past month. The Relative Strength Index (RSI) is also at a level of 34.70, indicating continued selling pressure. If the downward trend continues, the price of Ethereum may drop to $1,758. However, with an increase in demand, it could rise to $1,924 and even $2,224. You can check the live prices of all tokens and cryptocurrencies on the momentary price page of digital currencies.
