EthereumAs the general crypto market builds momentum, continued bullish behavior has not yet completely declined. While Ethereum prices have shown a short surge, the network continues to show weak user engagement, even in recent major updates aimed at increasing network performance and appeal.
Chain engagement with Ethereum delays
GlassNode, the leading on-chain data analytics platform, Share Recent concerns about the Ethereum Network. ETH prices may indicate signs of resilience amid ongoing market fluctuations, but network activity shows a different story.
GlassNode revealed sustained and undermined performance in ETH’s on-chain activity, raising concerns about whether its core ecosystem is losing momentum. This lack of consistent network activity occurs even while in progress Positive stories and upgrades.
According to the on-chain platform, latest key updates, such as Pectra upgrades, were unable to fire activity on the network. “Ethereum Pectra upgrades have not yet been converted to network engagement spikes,” the platform said.
It is worth noting that the Pectra upgrades officially began in early May and are intended to be enhanced. ETH Networkscalability and efficiency. The upgrade consists of two synchronous updates: Prague Run Layer Hard Fork and Electra Consensus Layer Upgrade.
GlassNode said the decline in users has decreased and Pectra upgrades have not increased the number of new or replied users after analyzing the monthly activity retention metrics. Data from the on-chain platform shows that the average count of new and revived addresses has decreased since the upgrade compared to annual (YTD) values.
Average new address for ETH During this period, revived addresses fell by 8.4%, but by about 1.8%. Additionally, user churn witnessed a drop of about 8.5% over the same time frame. So far, GlassNode noted that it is still unclear whether this is the result of a network upgrade or a more general cycle trend.
Short-term revision breakout
Network activity is weakened, but it is completely unhindered ETH Price From experiencing the rally. On-chain expert and author Shayanmarkets has It was predicted An imminent breakout as the Ethereum market overheats near the $2,500 mark. However, short-term fixes may occur before the breakout.
Using a bubble chart showing total transaction volumes across all crypto exchanges, experts highlighted that the overheating scenario marked by a prominent spike in transaction volume resulted from an approach to ETH’s approach. $2,500 Resistance Levelcurrently serving as a level of support.
This spike is primarily caused by profitability and the availability of rest supplies in this key zone. Furthermore, the overheated situation suggests the potential for a short-term decline as the market cools and creates room for fresh accumulation. on the other hand altcoin Shayan’s analysis said the move was probably driven by fresh demand.
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