Just when the Ethereum price is range-bound below $250, the number of ETH addresses has soared to a two-year high. According to GlassNode, the number of unique Ethereum addresses stood at 405,014, a level not seen since May 2018.
Ethereum address count at a two-year high
To expound, a blockchain address is a special identifier that every sender or receiver must control. That means each address has a private key, highlighting the level of demand for Ethereum.
The rise of decentralized finance (DeFi) could explain this spike but the increasing use of stablecoins–like USDT, may also be a factor. Although address count can be used to gauge demand, critics say this method has its weakness since a user may control several addresses.
While the number of ETH address count soared, Arca–a Los Angeles-based fund manager, received the approval of the U.S. Securities and Exchange Commission (SEC) to sell shares (ArCoins) on the Ethereum blockchain. The ArCoins will be based on the ERC-1404 protocol, a derivative of the popular ERC-20 standard.
This is the first time tokens secured by cryptography is being traded after approval of the SEC under the Investment Company Act of 1940.
In a prepared statement, Rayne Steinberg, the CEO of Arca said:
“Our announcement today is a ground-breaking and transformative step toward the unification of traditional finance with digital asset investing as this new category of regulated, digital investment products is made available to investors.”
Ethereum price analysis
At the time of writing, the Ethereum price is up six percent in the last week versus the USD. It has also registered gains against Bitcoin, adding five percent in the same period.
Notably, buyers are in control following the sharp rally above $230, reversing losses of June 27, 2020. Although bulls are not out of the woods as ETH prices consolidate within a $20 range, there is a slight chance of the ETH price breaking above $250 in the medium term. Fanning this will be fundamental factors, more so the activation of Beacon Chain mainnet on time.
In the daily chart, price action is balanced out and volumes of conspicuous bars are above average. With a break below the main support (now resistance) trend line on June 11, bears are at a vantage point. However, a close above $250 will cement buyers in a bull trend continuation pattern that began in mid-March, 2020.
If ETH bulls falter and prices sink below $230, odds of a trend down back to $200 will be highly likely.
Technical chart courtesy of Trading View
Disclaimer: This is not investment advice. Opinions expressed here are those of the author and not the view of the publication.