The crypto space has been undergoing extreme volatility for the past few weeks, challenging bullish strength every now and then. While Bitcoin’s dominance is increasing, Ethereum and the rest of the altcoins are trying hard to keep up with the pace. Woefully, the majority of the altcoins continue to trade under the bearish influence, while Ethereum manages to display significant strength, aiming to reclaim positions above $2000 in the next few days.
The ETH price in the daily charts, appears to be extremely strong as it managed to bounce off of the crucial support at the 200-D MA, around $1642. However, the price is yet to climb above the 100-D EMA at $1783, and hence, these levels become crucial resistance and support levels that may decide the next action for the Ethereum price rally.
Ethereum Adoption Widens While Whales Accumulate
The recent price drop attracted many to the platform, due to which the active supply reached new highs. These are the unique addresses that have transacted at least once in the specified interval of time. They can also be considered the new addresses created in a day, which suggests the adoption rate of crypto.
The number of addresses that transacted at least once has begun to add up since the first week of April and has been making new highs since then. This indicates the growing adoption of the token in the past couple of months. Besides, whale accumulation has also been soaring since almost the same time.
The above chart illustrates the supply in the top 1% of addresses, which can also be considered whale addresses as they hold nearly 1% of the circulation. The supply has been rising regardless of ETH price movements since April and has managed to form new highs every day.
Therefore, it may also be speculated that new ETH whales may have entered the ring. This may have a bullish influence on the second-largest crypto in the long term which may propel the price towards higher targets.
Source: https://coinpedia.org/price-analysis/ethereum-dip-offers-bullish-opportunities-heres-where-the-eth-price-can-reach-in-july-2023/