Within one week, the number of active addresses in the Ethereum blockchain jumped by a quarter, while transaction number grew by 21%. However, the price of ETH demonstrates signs of overbought.
According to GlassNode, the number of active addresses in the Ethereum blockchain grew by 26.7% in seven days, exceeding 260,000. The number of transactions also jumped sharply, by 20.77%, to almost 700,000. The gas usage, which is necessary to make transactions on the Ethereum network, jumped to highs that the network has not seen since September 2019.
The ETH cryptocurrency, which fell victim to the crypto winter, having lost more than 70% in price since 2017, has been showing steady growth since the beginning of 2020, adding 113% YTD. Currently, ETH is trading at $276, and its capitalization reached $30 billion. The growth of the cryptocurrency price is facilitated by the development of DeFi decentralized financial services market.
However, investors should be extremely careful when buying ETH. According to Edward Moya, senior analyst in Oanda forex market, one indicator of ETH warns that it is an overbought asset. In particular, Moya draws attention to the GSI indicator (GTI Global Strength oscillator). Currently, GSI is flashing bearish — a score of 92 this week is far in excess of the minimum 70 which designates “overbought” status. At the same time, altcoin can reach $440, the analyst believes, where the coin will meet "strong resistance" from bears.