Ether price risks losing the $1.6K support as multiple ETH price metrics decline

Its important to keep in mind that these instruments, unlike spot ETFs, would not include actual ETH coins if approved.On-chain metrics point to decreasing demandAside from a handful of unfavorable market conditions, Ethereums on-chain metrics point to a stagnation in demand, both in terms of ETH investments and smart agreement transactions.Number of Ethereum addresses with a minimum $1,000 deposit in ETH. In spite of changes in network staking metrics, there appears to be no boost in the total number of financiers when utilizing the $1,000 limit as a proxy.Moreover, information on decentralized application (DApps) activity on the Ethereum network proves the idea of a dearth of new users. Without an uptick in network activity, the catalysts for a price recovery are doing not have, such as potential network upgrades and applications that might lead to lower costs or enhanced user privacy.Competitors are benefiting from the stablecoin volumesIn the meantime, current advancements have left Ethereum lovers somewhat disappointed.

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Ethers cost rose by 31.3% from March 10 to March 18, accompanying the Federal Reserves injection of $300 billion to attend to the insolvency of Silicon Valley Bank. Because then, Ethers (ETH) price has actually consistently maintained a day-to-day closing rate above $1,600. Nevertheless, financiers are now calling into question Ethers ability to sustain this assistance level, provided the dominating bearish sentiment in the cryptocurrency area and declining metrics on the Ethereum network.Over the previous six months, the cryptocurrency sector has been afflicted by negative developments. Especially, the Digital Currency Group (DCG), the owner of the Grayscale shared fund manager, has actually dealt with monetary problems. Issues are mounting that a part of the $4.8 billion worth of ETH deposits held in the Grayscale Ethereum Trust might be liquidated to attend to DCGs debts.Furthermore, 2 significant global exchanges, Binance and Coinbase, are presently dealing with legal action from the United States Securities and Exchange Commission (SEC). In addition, investors at first expressed enjoyment when numerous requests for futures-based Ether exchange-traded funds (ETFs) appeared in early August. Its crucial to keep in mind that these instruments, unlike area ETFs, would not involve real ETH coins if approved.On-chain metrics point to decreasing demandAside from a handful of undesirable market conditions, Ethereums on-chain metrics point to a stagnancy in demand, both in terms of ETH investments and wise agreement transactions.Number of Ethereum addresses with a minimum $1,000 deposit in ETH. Source: Coin MetricsNotably, the number of Ethereum addresses holding a minimum of $1,000 worth of ETH deposits has actually reached its most affordable level in almost 6 months. This is concerning, considering that Ethers rate reached a peak of $2,130 in mid-April, which need to have drawn in brand-new investors.Part of the lack of investor interest can be credited to the reality that Ethereums typical transaction cost has actually remained above $4 for the past 6 months. As a result, despite changes in network staking metrics, there appears to be no increase in the overall variety of financiers when utilizing the $1,000 limit as a proxy.Moreover, data on decentralized application (DApps) activity on the Ethereum network substantiates the concept of a lack of new users. Ethereum network top DApps, 30-day active addresses. Source: DappRadarEven excluding the considerable 60% decline in the Uniswap NFT Aggregator, the average variety of active addresses across the top Ethereum network DApps decreased by 4% compared to the previous month.From cryptocurrency games to decentralized exchanges, nonfungible token markets and Web3 services, every sector has actually seen a decline in the number of active users, according to DappRadar. Regarding token activity on the network, with the exception of stablecoins and Wrapped ETH, no task has actually taped more than 13,000 unique receiver addresses over the previous week.Top token by distinct receivers, last 7 days. Source: EtherscanThis analysis underscores the truth that Ethereums network is presently constrained by its reasonably high deal charges, which limits the variety of active users. Without an uptick in network activity, the catalysts for a price healing are doing not have, such as possible network upgrades and executions that could result in decrease expenses or boosted user privacy.Competitors are taking advantage of the stablecoin volumesIn the meantime, recent developments have left Ethereum enthusiasts rather disappointed. Visa, the payment processor, has incorporated Solana blockchain settlement capabilities, following Circles USD Coin (USDC) introducing native accounts and transfers on the Base chain. In action, Coinbase without delay revealed its intention to help partners in transforming old, bridged versions of USDC to the new format.Furthermore, Rune Christensen, co-founder of MakerDAO, has put forth a proposal to develop the decentralized finance jobs upcoming native chain based upon Solanas codebase regardless of its longstanding association with Ethereum.In light of the prevailing bearish sentiment in the cryptocurrency market, that includes exchanges facing legal difficulties from the SEC and reducing interest in cryptocurrencies, as shown by the most current Google Trends information, the probability of Ethers rate dipping listed below the $1,600 assistance level has increased.This post is for general info purposes and is not planned to be and should not be taken as legal or financial investment suggestions. The opinions, ideas, and views expressed here are the authors alone and do not always reflect or represent the views and viewpoints of Cointelegraph.