Ethereum Surpasses Bitcoin in User Growth: Is Now the Time to Buy ETH?

Ethereum Outpaces Bitcoin in User Growth

Ethereum’s price has experienced significant declines in recent months, yet the network continues to see impressive user growth, outperforming Bitcoin in key areas. While Ethereum’s price is currently down about 40% from its peak earlier this year, the number of active users on the network is rising. Analysts from Santiment have noted a 3.3% increase in unique Ethereum addresses, in contrast to Bitcoin, which saw a slight 0.1% decline. Currently, Ethereum boasts over 126.96 million addresses compared to Bitcoin’s 54.18 million.

This growth in user base suggests increasing investor confidence in Ethereum and its potential for wider adoption. Despite the broader market challenges, the expansion of Ethereum’s user network could be a positive indicator for the cryptocurrency’s long-term value.

Interestingly, Tether (USDT), a stablecoin often used by traders to hedge against market volatility, also showed a 4% increase in unique addresses over the past three months. This trend may reflect a cautious approach by traders, who prefer holding USDT during uncertain periods. As these new users accumulate USDT, they could eventually invest in cryptocurrencies like Ethereum or Bitcoin when the market stabilizes.

Ethereum Whale Activity Analysis

While the user base of Ethereum is expanding, whale activity—large transactions typically made by institutional investors—has been declining. This decline has been noticeable since the first quarter of 2024, following Ethereum’s price peak. Analysts suggest that whale activity is likely to remain subdued unless significant price action pushes Ethereum or Bitcoin past key resistance levels.

ETH Price Analysis: Will Ethereum Continue to Decline?

Ethereum’s price is currently attempting a recovery, trading above $2,400. However, it faces strong resistance at the $2,500 level, a key threshold that it must break to gain further momentum. Recently, the price moved above crucial support levels at $2,350 and $2,400, but it continues to struggle with the 100-hourly Simple Moving Average and key Fibonacci retracement levels.

If Ethereum can close above the $2,500 mark, it might rise to $2,550 or even $2,620 in the short term. However, failure to break this resistance level could lead to another decline, with key support levels at $2,400, $2,340, and potentially $2,300.

• MACD (Moving Average Convergence Divergence): Losing momentum in the bullish zone.
• RSI (Relative Strength Index): Slightly above the 50 mark, indicating mild bullish momentum.
• Major Support Levels: $2,400, $2,340, $2,300.
• Major Resistance Levels: $2,500, $2,550, $2,620.

Is It Time to Buy Ethereum?

Ethereum’s user growth and long-term potential appear strong, but the current market volatility and resistance levels present challenges for short-term investors. For those considering buying Ethereum, it is crucial to monitor the $2,500 resistance level. A breakout above this point could indicate a recovery, while further declines might suggest that more patience is needed.

While some investors view the current dip in Ethereum’s price as an opportunity to accumulate, others may prefer to wait for a clearer trend reversal. Whether now is the right time to buy depends on your investment strategy and risk tolerance. Keeping an eye on market movements and key price levels will be essential in making an informed decision.