Ethereum was bearish for more than a year and it dipped below $1,00 last year, but it has formed a base and has been increasing so far in 2023. ETH/USD has been rallying higher since the beginning of January, but there’s more to Ethereum’s bullish momentum this month. The network is approaching 100 million Ethereum addresses.
Active addresses are considered only those that successfully completed a transaction, as a sender or receiver. This means that, Ethereum users aren’t just holding their Ether, instead they’re using ETH to run programs on the blockchain. Despite some of the crypto exchanges and custodians going out of business during the crypto winter, the demand for new addresses and transactions has not paused.
Cryptocurrencies continue to remain bullish with capital inflows remaining high throughout January. The positive sentiment in the financial markets as the economic data shows improvement, is helping the sentiment in the crypto market, so all major cryptocurrencies including Bitcoin and Ethereum have been making decent gains this month.
Bitcoin pushed above $23,000 earlier this week and it shows no signs of weakness, as moving averages continue to keep it bullish on the H1 chart. Ethereum on the other hand, was retreating lower yesterday after a bullish move over the last weekend which sent it close to $1,7000.
Ethereum H4 Chart – The 50 SMA Acting As Support
Smaller MAs keeping Ethereum bullish
So, Ethereum continues to remain bullish, although the momentum has slowed in the last week. The 20 SMA (gray) was acting as support in the first two weeks of January for this digital currency, which shows that the pace was very strong, now the 50 SMA (yellow) has taken its place. We saw the price bounce off this moving average last week and make a new high, but it has returned back to it, so we will see if there will be another bounce off this moving average.