Ethereum’s network has been buzzing with activity lately, with more people using it and more transactions happening every day. But despite this, the price of Ethereum (ETH) has been going down.
Surge in Network Activity
More activity on a network usually means more demand, which is good for the price. And Ethereum has seen a big jump in the number of people using it. Since January, the number of active Ethereum addresses has gone up by over 46%.
Price Drop Despite Activity
But even with all this activity, Ethereum’s price has been dropping. It’s down by over 10% in the past week and 17% in the past 10 days.
Reasons for the Drop
- SEC Investigation: The Securities and Exchange Commission (SEC) is looking into Ethereum and the Ethereum Foundation. If they decide that ETH is a security, it could cause a lot of problems for the cryptocurrency market.
- Market Sentiment: The overall mood in the crypto market is not great right now. People are worried about the economy and inflation, which is making them less likely to invest in risky assets like cryptocurrencies.
Can Ethereum Bounce Back?
It’s hard to say for sure. The price of Ethereum depends a lot on market sentiment and speculation. But the strong network activity is a good sign for the long term.
Support Level
Right now, Ethereum is trading around $3,355. If it falls below $3,280, it could keep dropping.
