Ethereum (ETH) This Week: A Mixed Bag of Whales, New Users, and Technical Analysis

Ethereum (ETH) has had a busy week, with strong financial performance in Q1 2024 being overshadowed by a large investor moving their holdings and a potential price correction. Here’s a breakdown of the key factors to consider before trading ETH this week:

Ethereum’s Strong Q1 Performance

A recent Coin98 report highlights a significant surge in Ethereum’s transaction fees, revenue, and user activity. Over 107 million transactions were processed in Q1, with almost 9.7 million new addresses created. The Ethereum ecosystem thrived as well, with TVL (Total Value Locked) surging and over 4.8 million NFTs minted.

ETH Whales and Market Volatility

A long-dormant whale, who participated in Ethereum’s 2014 ICO, recently transferred a significant amount of ETH to Kraken, sparking fears of a sell-off and potential price drop. However, on-chain data from IntoTheBlock reveals a larger trend of ETH accumulation, with a net outflow of $4 billion from exchanges in the past quarter.

New User Growth

Ethereum and Polygon led the way in attracting new users in Q1 2024, according to Flipside. DeFi (Decentralized Finance) emerged as a major driver, with Ethereum leading in trade volume. NFT (Non-Fungible Token) activity showed mixed results, with growth on Ethereum and Base but a decline on Polygon.

ETH/USD Technical Analysis

Ethereum bounced back from a correction earlier this week, currently trading at $3,388.

• Key support levels include the EMA55 at $3,308 and $3,205.
• Resistance lies at the EMA21 at $3,445, with a break above potentially leading to a climb towards $3,500 and $4,000.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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