Amid a prolonged bearish trend, user activity on the Ethereum cryptocurrency (ETH) blockchain has dropped to a two-year low.
On June 6, the number of new addresses on the Ethereum network reached its lowest value since April 2020 at 59,900, according to research organization Santiment. The number of created ETH wallets decreased by 79% from the peak (283,000) recorded last May.
The graph shows that, more often than not, the growth of cryptocommunity activity coincides with an increase in the value of virtual currency. Conversely, a drop in the price of the coin is accompanied by a decline in the number of new wallets, so we can assume that the Ethereum market will remain in a downtrend.
The ETH exchange rate fluctuates within a bearish pattern of a shrinking triangle, with the lines of the pattern crossing on June 17. The width of the triangle suggests that if the pattern breaks down, Ethereum will fall in price to at least $1,450.