The world’s second-largest cryptocurrency Ethereum (ETH) has come under severe pressure recently. On Wednesday, July 14, the ETH price dropped under its crucial support of $2000. At press time, ETH is trading at 1.71% down at a price of $1927.
We can’t say whether if the downside is limited from here, however, $1800 remains a key level to watch for at the downside. On-chain data provider Santiment reports: “For now, as long as the $1800s hold, we’ve got a chance to make it back towards the $2200s to test the resistance trendline”.
Ethereum dropped 16% after breaking the rising wedge last week. It has once again bounced back a bit from this week’s bottom and is trying hard not to fall to its previous support levels of $1700.
On-chain Metrics for Ethereum
One of the concerning things for ETH investors is that its network growth is on a downtrend. Although there are a few occasional spikes, they aren’t sustaining for long. To establish a stronger bull case, we need to see the reversal in the network growth resuming back to the north.
Looking at the positive side, the daily active addresses have remained healthy so far. Since the beginning of 2021, an average of 400K active addresses have been interacting with the Ethereum network.
At the same time, the ETH supply at the exchanges has been on a decline. This is a good sign as it helps to reduce the sell-side pressure. This declining trend could be the trigger for a positive outlook in the future.
Ethereum Network Settlements Spike
On Wednesday, July 14, crypto research platform Messari released a report wherein it stated that the Ethereum blockchain settled $2.5 trillion in transactions during the second quarter of 2021. This was a massive 65% surge over the previous quarter and a 1500% surge YoY. Messari noted that Ethereum could be settling a massive $8 trillion by the end of 2021.
In Q2 2021 Ethereum settled $2.5 trillion in transactions.
This represents +65% QoQ and +1,490% YoY, and puts Ethereum on pace to settle $8 trillion in 2021. pic.twitter.com/w97YSdwIgo
— Ryan Watkins (@RyanWatkins_) July 14, 2021