Ethereum has gained over 40% since the start of 2023 and is currently moving within a strong demand zone. Popular cryptocurrency analyst Ali Martinez used the following statements for Ethereum in his evaluation, referring to the data of IntoTheBlock:
“Note that the $1,600-$1,650 level represents a significant area of support for #Ethereum. Onchain data shows that 1.94 million addresses purchased 8 million $ETH between $1,600 – $1,650. As long as this important demand wall holds, #ETH has a good chance of advancing further.”
On the other hand, ETH is currently facing a strong resistance at $1,700. Any break above these levels could help ETH further its rally.
According to the data report from Analytex, user activity on the Ethereum network increased significantly in January. This has resulted in higher average gas fees on the Ethereum Blockchain network. Calculated in terms of the smallest Ethereum value, gwei, it is seen that the average gas fee increased by 29.27 percent in January compared to the previous month. The report also noted that the average number of unique Ethereum active wallets per day decreased by 10 percent to 387,475. Also, there is a 0.8 percent drop in daily Ethereum transaction data from December to January. Also, the average daily number of ETH transactions has been falling for eight months.
The recent surge in user activity on Ethereum seems to be due to the increase seen in the activity of decentralized finance (DeFi) protocols in recent days. The massive increase in total value (TVL) locked in different DeFi protocols in January supports this claim. The expectation that the upcoming Ethereum Shanghai update will be available in March also increases staking on DeFi.