Ethereum: Active Wallets Surge, But Price Faces Hurdles

The Ethereum ecosystem is buzzing with activity, but the price of ETH struggles to break through resistance levels.

Ethereum Ecosystem Sees A Surge in Active Users

Over 10 million wallets are now actively interacting with the Ethereum network, including the mainnet and layer-2 solutions. This milestone follows the successful implementation of the Dencun upgrade, which addressed scalability and gas fee concerns.

Analysts predict this number could reach 100 million in the next bull run, driven by lower fees and wider adoption.

Ethereum Dencun Upgrade’s Impact

Dencun utilizes “blobs” to store non-essential data outside the Ethereum Virtual Machine (EVM), streamlining block verification. This innovation has reduced transaction costs on layer-2 platforms, attracting new users and boosting DeFi activity. Total Value Locked (TVL) across layer-2 and DeFi protocols has grown significantly in recent months.

Remaining Challenges

Ethereum’s scalability limitations could resurface during periods of high network usage, potentially driving gas fees back up. Some users might migrate to alternative blockchains like Solana or Avalanche, especially if meme coin deployments become prevalent on Ethereum.

ETH Price on Hold

Despite positive developments, the price of ETH remains stuck around $3,100. Failing to surpass resistance levels at $3,200 and $3,280 has created a short-term downtrend.

If the price falls below $3,100 support, further declines towards $2,850 or even $2,650 are possible.

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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