Ethereum Hits 100 Million Users Amid Bear Market: Price Rally Ahead? 

Key Ethereum Price Insights:

• Ethereum (ETH) price is currently trading at $1,570 (Thursday, October 19, 2023) as the bulls make frantic efforts to contain losses from Monday’s flash rally. 
• The number of Funded ETH addresses recently crossed the 100 million mark for the first time, despite the prevailing bearish sentiment in the crypto markets.
• Technical indicators reveal how high the recent spike in new users could drive up ETH price in the days ahead

Ethereum’s recent network adoption milestone has coincided with traders grappling with liquidations worth $440 million after Cointelegraph published a false news report on Monday. On-chain metrics provide data-driven insights into ETH’s potential price action for the weeks ahead. 

Ethereum Reaches 100 Million Funded Addresses

In September 2022, Ethereum transitioned from Proof of Work (PoW) to the Proof of Stake (PoS) consensus. The 3-part major premise was to mitigate energy consumption, reduce transaction fees, and increase global adoption. 

Since The Merge, the Ethereum has announced that energy consumption reduced by a 99.988%, while have also dropped to 3-year lows. And this week, global adoption has also ballooned to a new milestone. 

On Monday, October 16, Ethereum reached an all-time high of 100 million Non-Zero balance addresses, according to on-chain data compiled by IntoTheBlock. 

A deeper dive into the historical data-trends shows that, the ratio Non-Zero balance addresses has increased from 30% to 37% since the Ethereum Merge. 

The chart below shows that only 30% (57.64 million of the total 192 million) of Ethereum addresses held balances of  at least 1 Gwei, on September 15, 2022. But that ratio has now increased to 37% as on October 19, 2023, with 100.07 million of 270 million total ETH address now funded. 

Non-Zero Balance Addresses also called Funded Addresses, is a term that distinguishes crypto wallets that currently hold some units of ETH, from addresses with zero holdings. 

This significant increase in Ethereum’s Funded Addresses indicates increasing global adoption investors’ interest in ETH. This a visible bullish signal, that could potentially propel Ethereum price during the next bull rally. 

Notably, the timing of this surge in Funded addresses has coincided with the Ethereum Merge executed last September. This suggests the reduced transaction fees have attracted new active investors to the Ethereum ecosystem. 

Ethereum Price Prediction: Is the $1,700 Territory is Within Reach

Ethereum (ETH) price currently trades at $1,575 as the bulls make spirited attempts to reclaim losses from Monday’s flash rally. From an on-chain perspective, the spike in number of new investors puts ETH in a prime position to break above $3,500 during the next bull rally. 

However, in the short-term technical analysis indicators also affirm the thesis that ETH could soon enter a price breakout. 

The RSI is currently trending neutral around 41, which suggests that there might be room for a potential price bounce or strong support consolidation in the short term.

In the daily time frame, the upper Bollinger Band indicates that ETH initial resistance is at $1,604.  A decisive breakout above that level will likely lead to a larger upswing toward the upper band at $1,707.

On the downside, the lower Bollinger Band is at $1,500. Notably this also doubles as a key psychological support level. And if ETH price sinks below $1,500 level it could attract buying interest and trigger a quick rebound. 

Although unlikely, ffailure to rebound from that range, could open the doors to further reversal toward $1,400.