Ethereum's circulating supply has seen a significant boost in the past week, marking levels not witnessed since February 2023. On-chain data discloses an increase of 12,353 ETH, valued at over $39 million, entering circulation within the last seven days.
This rise in circulating supply aligns with a decline in the network's demand, impacting the performance of ETH.
Facing Inflationary Pressures, Ethereum's Circulating Supply Surges
Ethereum's circulating supply, depicting the availability of coins or tokens to the public, has soared by an additional 12,353 ETH in the past week. This surge takes the total circulating supply of the coin to 120.51 million ETH, a peak last seen in February 2023.
Typically, ETH experiences a surge in its circulating supply during periods of reduced user activity on the Ethereum network. According to Artemis, this trend is currently observed on the proof-of-stake (PoS) network.
In the previous week, the count of unique addresses engaging in at least one transaction involving the altcoin has decreased by 4%. Consequently, the number of daily transactions carried out on Ethereum has also fallen by 1% during the same timeframe.
The recent downturn in Ethereum's user engagement is mirrored by a decrease in the total value locked (TVL) across its decentralized finance (DeFi) ecosystem. As per DefiLlama data, this metric has declined by 4% during the review period.
ETH Price Forecast: Predictions on Breaking Below $3,000
The dwindling activity on the Ethereum network has impacted the demand for ETH, leading to a 4% price drop over the past week. Assessment of the ETH/USD one-day chart indicates minimal buying activity among participants in the market.
Observations from the Moving Average Convergence Divergence (MACD) indicator validate this bearish stance. Presently, the MACD line (blue) for the leading altcoin falls below its signal line (orange).
When the momentum indicator displays this setup, a bearish market trend is suggested. This signifies that the selling pressure surpasses accumulative activities among market participants, hinting at a potential continuation of ETH's price decrease.
In this scenario, it is probable for ETH's price to dip below $3,000 and trade at $2,945. Nonetheless, a surge in new demand could drive the coin's value upwards towards $3,369.