Ethereum hits 100 mln addresses even as ETH struggles

• ETH addresses with some balance have surpassed 100 million.
• The altcoin may drop to $1,650, but a recovery may not take long.

The number of addresses that have a minimum of one wei of Ethereum [ETH] has crossed the 100 million mark, according to data from IntoTheBlock.

ICYMI: Ethereum Broke 100 million addresses with a balance this week. pic.twitter.com/zotzGMIfD8

— IntoTheBlock (@intotheblock) October 22, 2023

How much are 1,10,100 ETHs worth today?

Based on the information disclosed by the crypto insight platform, the jump was a result of increased accumulation of ETH by market players since 16 October.

Previous holders return in faith

For the unfamiliar, a wei is the smallest unit of the Ethereum native cryptocurrency. Thus, a simple interpretation of this milestone is that there are now more participants who believe in the long-term potential of the altcoin.

However, on-chain data showed that the growth was not proof that new entrants were coming into the Ethereum network. This conclusion was based on the trend displayed by the network growth.

Network growth shows the number of new addresses interacting with a network. At press time, the metric was down to 14,600, meaning that traction on Ethereum was very low.

Hence, one can assume that the hike in addresses was majorly due to wallets which one has ETH but yanked it off at some point.

Source: Santiment

Another reason could be linked to ETH’s performance in recent times. Although the coin value has grown 6.93% in the last seven days, it has not been able to match the performances registered by Bitcoin [BTC].

ETH faces a critical period

Also, other altcoins like Solana [SOL], Polygon [MATIC], and Chainlink [LINK] have also outperformed ETH. On looking at the technical status, the ETH/USD 4-hour chart showed that the altcoin faced rejection as bulls attempted to help it rise past $1,700.

However, the structure of the market remained bullish with support gathered at $1,563. Despite the bullish market structure, it is likely that ETH may not continue its uptrend unless there is a retracement, possibly to $,1650.

This assertion was because of the Relative Strength Index (RSI). At the time of writing, the RSI was 73.98. Although the value of the indicator implies superb buyer strength, it is also a sign that ETH was oversold.

Therefore, the price reversal may not stop at $1,688. Rather, it has the tendency to go lower. Meanwhile, the Directional Movement Index (DMI) suggests that a decline in ETH’s value may not last long.

Source: TradingView

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One reason for this was the state of the +DMI (green) and -DMI (red) shown above. As of this writing, the +DMI was 41.52 while the -DMI was 5.60. Such a large difference implies that bulls were in full control of the market.

Also, the Average Directional Index (ADX) seemed to support the trend. As a measure of directional strength, an ADX (yellow) under 25 indicates a weak directional power. However, the ADX for ETH was 49.99, meaning that the upward direction has superb force supporting it.