Ethereum lost the $2,000 psychological level despite new wallet creation and activity hitting historic highs. The active ETH addresses reached are up by more than 80% since the last 5 years. With ETH reserves on Binance crashing, the prices are set to appreciate when the market condition alleviates.
Ethereum lost a major support level even when the on-chain metrics looked very good. According to an observation by Santiments, an on-chain and social data analytics platform, there were 837.2K active $ETH addresses per day, which is +82% compared to 5 years ago and around +1,135% compared to 10 years ago.
ETH on-chain data hits historic highs
In addition, there are 284.8K new $ETH addresses created per day, which is +64% compared to 5 years ago and +1,967% compared to 10 years ago.
As shown in the chart above, ETH prices crashed from $4.8K and then started forming the ascending triangle pattern, which broke upwards. However, going against the norms, ETH crashed even further as it broke out from the ascending triangle with the surrounding geopolitical tensions.
Ethereum crashes below $2K psychological level
With the situation escalating and igniting into a fully fledged war, ETH could not hold above the $2K support level, a psychological support level that the traders always look for. Now the bears and the bulls are battling it out as ETH is priced at $1.97K. The coin is testing the 30-day moving average, a short-term indicator that, if broken, will see ETH soar above $2K.
On the technical front, there is a bullish divergence. When the ETH price is consolidating, the Relative Strength Index (RSI) is making higher highs and higher lows. This means that although the prices are consolidating, there is bullish momentum building behind the scenes.
Meanwhile, Etherem reserve levels on Binance have hit 2020 low levels. This goes on to show that the investors are moving their holdings to their wallets, and they have no intention of selling the coin in the near future. As such, once the market conditions get better, the crunch in supply will reflect on the prices, and ETH will appreciate.
