While the Ethereum price still struggles to mount a sustained bullish momentum, an investigation into its on-chain activity has revealed a significant change in the behavior of its market participants.\u00a0<\/p>\n
In a Quicktake post on the CryptoQuant platform, market analyst CryptoOnchain shared<\/a> that there has been a growing scarcity of activity within the Ethereum network. Specifically, the quant referenced data obtained from the Ethereum Active Addresses metric, observed on the 7-day Simple Moving Average.\u00a0<\/p>\n Since reaching its peak in August, the Active Addresses metric has declined steadily from about 483,000 to 327,000 \u2014 a level which marks the lowest reached since May this year. This downturn of more than 32% suggests an increasing exit of willing participants from the Ethereum network.<\/p>\n Interestingly, the aforementioned downturn is not a stand-alone phenomenon. Just around the same period where active addresses explored the southside of the charts, the Ethereum price also took on a bearish direction. This period saw the Ether token lose its $4,800 valuation and begin its descent to the current price around $3,100.<\/p>\n According to the analyst, this strong correlation between the falling Ethereum valuation and its contracting network usage points to something clear \u2014 that the recent price drop is likely a result of reduced network demand. This further shows that market participants are moving past speculation<\/a>, and are in lieu adopting a broader outlook on the Ethereum blockchain.\u00a0<\/p>\n On the more positive side, CryptoOnchain explained how healthy bull cycles differ from the present market cycle. Typically, rising prices are not taken for granted as they often indicate a healthy bullish cycle<\/a>. <\/p>\n An expansion of the cryptocurrency\u2019s network usage also lends credence \u2014 enough to serve as confirmation \u2014 to suspicions of structural shifts into bullish phases. This theory holds true from a variety of historical occurrences. <\/p>\n Ethereum Market\u00a0Outlook<\/h2>\n