Ethereum's Active Addresses Have Decreased By Only 7% Despite ETH's 56% Drop From its ATH

Ethereum Has Between 7 – 50 Million Active Users

Similarly, the team at A16z had concluded in a recent report that the number of active users on Ethereum is between seven to fifty million. Furthermore, this amount of active users was similar to ‘the early commercial internet, that puts us somewhere circa 1995 in terms of development.’

Additionally, using an estimated adoption rate similar to the internet in 1995, the team at A16z projected that Web3 could reach 1 billion users by 2031. As a result, the Web3 ecosystem is still in its early stages of development.

The report, titled ‘Introducing the 2022 State of Crypto Report’, also pointed out that Ethereum is a clear leader in the Web3 arena and developer activity by having nearly 4,000 monthly active developers.

Ethereum Is Still In Bear Territory

Concerning price action, Ethereum is trading in bear territory below the 50-day (white), 100-day (yellow), and 200-day (green) moving averages.

However, the daily MFI, MACD, and RSI point towards an oversold scenario that could result in a bounce back above $2k and consolidation to confirm the latter support level.

But caution is advised going long on Ethereum given that Bitcoin is currently struggling to maintain its price above the crucial $28k support level. A loss of $28k by Bitcoin will most likely translate to more losses for Ethereum and a possible retest of the local low of $1,800 set last week.

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