Ethereum’s On-Chain Activity Showing Some Strange Activity Ahead of Two Major Events
content
- Fees remain cool
- active address discrepancy
At least two fundamental events are going to happen this week that could change the shape of both financial and cryptocurrency markets for good as the Fed prepares to release GDP information. After both events, Ethereum is show Huge increase in address activity. There are a few other discrepancies to watch out for.
Fees remain cool
Historically, Ethereum traders and investors have shown more signs of activity reflected in network fees ahead of important events such as GDP releases. Before any major event, investors hedge their holdings and send them to exchanges in case they need to sell their coins as quickly as possible.
Middle #ethereumThe dwindling fees and the sudden massive address activity spike that we picked up a few hours ago are some anomalies to watch for as traders prepare for #irrigated And #GDP Information is coming out. read about #makerDAO paid off debt and more $ETH, https://t.co/86itunEPMz pic.twitter.com/2jj1mKHDBL
— sentiment (@santimentfeed) 27 July 2022
As the on-chain metrics show, ETH fees are still moving in a downtrend, indicating that both long-term investors and traders do not think it is necessary to take any steps to protect themselves.
active address discrepancy
One of the biggest spikes in address activity appeared on Ethereum yesterday, in what is regarded as one of the metric’s biggest moves in the asset’s history. Such a strong and unexpected increase in active ETH addresses does not seem natural and could mean that some kind of operation went under the radar of the market.
There are many things that can cause such strange movement on the network. One of them is airdrop farming, which is the most likely cause. The transfer of wallets before the merge update can also lead to a sharp increase in the number of active addresses on the network.
At press time, Ethereum is trading at $1,458 in the past 24 hours and has lost over 10% of its value.