Users Holding 1000+ ETH, Drops to 5-Year Low

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Furthermore, it should be noted that the total gas usage on the Ethereum network has also dropped to a new one-month low. This metric hovering around multi-week lows indicated how fewer people are actually using the network, making it another fundamental trammel.

The aforementioned bumps on the road called for a correction. However, Ethereum’s scars might not be that deep. The dormant supply is flashing a concrete positive trend. The supply last active 5-7 years back has just created a monthly peak of 10.5 million ETH. Alongside, the amount of supply last active for 7-10 years, just created an ATH of 3.9 million ETH, indicating how diamond hands remain to be unaffected by the state of the market. This essentially means Ethereum could considerably cap its losses.

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Ethereum technical front

At press time ETH was trading at $1931. The asset has not been successful in converting $1959 as support. It did spike up a handful of times above the said level this year but never had sufficient momentum to rally higher. So, only when this level is conquered, ETH could head towards its 2023 peak and eventually create a new high. If the fundamentals continue to decline, and sellers may keep disposing of their holdings, then ETH could drop down to $1754 in the coming days.

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