ETHEREUM ON-CHAIN ACTIVITY INCREASES AHEAD OF SHANGHAI UPDATE
- Ethereum transactions and active addresses have increased.
- Open interest in derivatives markets has also increased.
- The price of ETH is above $1,900 — a seven-week high.
On-chain activity and the price of Ethereum (ETH) have surged just a week after the Shanghai update.
Ethereum prices are not the only thing that has been rising this week. On-chain activity on the world’s largest smart contract network has also increased.
According to Etherscan, the number of daily active Ethereum addresses has increased this month. There has been an increase of approximately 10% in addresses since the weekend.
The number of daily active addresses for the network currently stands at 443,292 as of 4 April. It has been relatively stable for the first three months of the year, showing a slight uptick in recent weeks to remain above 400,000.
Moreover, daily transactions have mirrored this movement, with a 9% increase since the weekend. The number of daily transactions in Ethereum is currently 1.07 million, although it has been around this level for most of the year.
Ethereum Shanghai update to be completed on April 12
It is likely that the recent minor increases in activity are related to ETH price movements. In addition, the much-anticipated Shanghai update is only a week away, scheduled for next Wednesday, 12 April.
Shanghai, also known as Shapella, will combine changes to the Ethereum Virtual Machine (EVM) and the “Capella” consensus layer. It will allow the gradual withdrawal of ETH locked in Beacon Chain from December 2020.
According to tracker Ultrasound.Money, the network has been experiencing major deflation since mid-January. Moreover, supply has shrunk by more than 78,000 ETH since “The Meltdown” occurred in mid-September. At current prices, the stash is valued at around $149 million.
On 5 April, intelligence platform Decentrader reported that Ethereum’s funding rate was “working perfectly as a leading indicator of multiple upward movements”.
On-chain data reveals that the next critical resistance area is between $2,100 and $2,150. This is where more than 200,000 addresses had previously bought more than 18 million ETH.
Ethereum price rises above USD 1,900
Ethereum touched a seven-month high during the Asian trading session on Wednesday morning. As a result, ETH reached $1,920 a few hours ago before holding just below this level.
Moreover, the asset has risen by 22% in the last 30 days.
There is very little in terms of resistance between current price levels and the psychological barrier of $2,000.
Source: Beincrypto
Disclaimer: The information set out herein should not be taken as financial advice or investment recommendations. All investments and trading involve risk and it is the responsibility of each individual to do their due diligence before making any investment decision.
