The second largest cryptocurrency, Ethereum, had found a small hold around the $3,000 level a few days prior. However, this did not last long as the main altcoin slipped from $3,030 and peaked below $2,800. Currently, the Ethereum price is trying to get an upward correction.
At press time, the price of ETH is valued at $2,881 with a decline of 3.81% in the last 24 hours.
Ethereum to see other disadvantages
Ethereum’s native coin Ether’s current price chart is on a downtrend and it represents a steep decline of 11% over the past month. On the other hand, other financial assets experienced even stronger corrections at the same time. The Invesco China Technology (CQQ) ETF is down 31% and the Russell 2000 is down 8%.
Currently, with the price of ETH hovering around $2,890, traders fear that if ETH fails to hold this level and falls below $2,850, the currency could experience a strong pull. However, this depends on how derivatives traders will be positioned alongside the on-chain metrics of the Ethereum network.
According to DeFi Total Value Locked (TVL) aggregator, DeFi Llama, the Total Value Locked (TVL) of the Ethereum network hit a low of 27 million Ether in the last 30 days. Total Value Locked or TVL measures the number of coins deposited on smart contracts, which also includes decentralized finance (DeFi), non-fungible token markets (NFTs), games, and other high-risk applications.
The on-chain metric shows a bearish signal
It should be noted that the active addresses on the network, which gives a fast and reliable indicator of efficient use, could be in error with the increased adoption of the Layer 2 solution. However, this metric only works as a benchmark. departure.
Currently, the daily average of active addresses stands at 584,477, which has decreased by 4% over the past 30 days. Therefore, the data reveals that the transactions of the Ether token show no signs of growth, at least on the initial layer.
So, traders should depend on DApp usage metrics, however, they should avoid focusing entirely on TVL as this metric is mostly focused on Defi apps.
Additionally, active Ethereum DApps addresses have succumbed in the last 30 days. Therefore, we can say that the overall data is negative compared to Solana which saw a 34% increase in active addresses.
Unless Ethereum sees an upward trend in Ether transactions and DApp usage, Ethereum price may not hold its position above $2,850, leading to more near-term price corrections.