ETH has increased by more than 40% since the start of 2023 and is presently in a high demand area.
At the time of publication, the price of Ethereum is $1627, which is down 2.9%, with a market size of $199 billion. According to recent behavior, ETH may find firm support near $1600 continuing forward.
The $1,600–1,650 range should be noted as a key point of support for #Ethereum. According to Onchain statistics, 1.94 million addresses spent between $1,600 and $1,650 to buy 8 million $ETH. The chances of #ETH moving forward are strong as long as this significant demand wall remains in place.
Increase in Ethereum On-Chain User Activity
According to an Analytex data study, user activity on the Ethereum network dramatically increased in the final month of January 2023.
When expressed in gwei, the smallest unit of currency for Ethereum, the average gas price in January 2023 increased by 29.27% in comparison to the prior month. The study also notes a 10% decrease to 387,475 in the daily average number of unique Ethereum active wallets.
In addition, there was a 0.8% decrease in daily Ethereum transaction statistics from December to January.
The recent increase in DeFi activity may also be to blame for the current spike in user activity on Ethereum. During the last month of January 2023, the total value locked (TVL) across several decentralized financial protocols increased.
The predicted availability of withdrawals from the Ethereum staking contracts in March 2023 is another factor boosting staking in DeFi in anticipation of the forthcoming Ethereum Shanghai hardfork. Watching to see whether ETH can reach $2,000 by the Shanghai hardfork will be intriguing.