(Akash Girimath – FXStreet)
– Ethereum price rallies 15% due to the interest rate hike during the FOMC meeting.
– ETH could continue this rally to retest the $1,700 hurdle or retrace and bounce off the $1,543 level.
– A daily candlestick close below the $1,543 support level will invalidate the bullish thesis.
Ethereum price shows signs of continuing the uptrend that was recently triggered by the US central bank raising interest rates by 75 basis points. This development spurred buying pressure triggering rallies in Bitcoin, Ethereum and many altcoins.
Ethereum price has another chance
Ethereum price fell short of retesting the $1,700 resistance barrier after rallying 65% between July 13 and July 24. However, the FOMC-induced rally is giving ETH bulls another go at reigniting a bull rally.
During the FOMC meeting on July 27, ETH climbed 15% and set a swing high at $1,680 but failed to retest the aforementioned resistance barrier. This lack of bullish momentum could result in a retracement.
However, the Ethereum price and the bulls will get another chance after retesting the $1,543 support level. A bounce off this level is the last chance for buyers to band together. If successful, investors can expect the resulting upswing to retest the $1,700 level.
If the momentum persists, the Ethereum price could even revisit the $2,000 psychological level.
On the other hand, if Ethereum price breaks below the $1,543 support level, the chances of revisiting the $1,284 barrier are high.
A daily candlestick close below this level will invalidate the bullish outlook and open the path for ETH to revisit the range’s midpoint at $1,080.
Experts yet to explain massive spike in ETH active addresses
On-chain metrics firm Santiment says it is still investigating the cause of a sudden surge of ETH active addresses, which have eclipsed the previous ATH by a whopping 48%
On July 27, the analytics firm tweeted that the number of daily active addresses on Ethereum had suddenly spiked to 1.06 million, shattering the previous high of 718,000 set back in 2018.
An active address is one that has made a transaction in the past 24 hours. The number of active addresses can indicate the level of on-chain activity from developers and projects inputting updates to their work or platforms, and traders performing simple token transfers.
However, Santiment says its team is still investigating the cause of the spike. Cointelegraph also reached out to Ethereum core developer Tim Beiko to explain the unusual activity but did not get an immediate response.
Head of strategy at Coinbase Conor Grogan posted in a Twitter thread that the increase in activity comes from a high number of token transfers per unit of gas rather than from greater adoption.
He explained that the spike in active addresses is due to an increase “mundane” send/receive activity, such as “Binance doing a maintenance sweep,” as opposed to more “productive” activity from decentralized finance (DeFi) and nonfungible token (NFT).
Active addresses had been increasing since their two-year low point of 364,400 on June 26 with a notable smaller spike on July 16 up to 583,000 according to Santiment data.
The daily active addresses metric for Tether (USDT) has also seen a significant spike in active addresses over the past two days from July 26 to 27, possibly corroborating Grogan’s observations about greater activity coming from simple token transfers.
The Goerli and Prater testnets for Ethereum are expected to merge together into a single Goerli testnet between August 6 and 12 according to a July 27 blog post from the Ethereum team. The Ethereum mainnet is expected to transition into its own merge on September 19.
The spike in activity was followed by a 15.5% pump on Ether (ETH) over the past 24 hours from $1,425 to $1,648 according to CoinGecko.