The value has been showing its volatility as geopolitical tensions rise. Although it is bleeding on the price charts, some on-chain metrics are displaying the strongest growth of Ethereum’s history. For example, its network activity is still near its all-time high levels. This gap between ETH’s price action and the fundamentals of the network can be seen as a silent bull run for Ethereum.
Ethereum Sees a Value Drop As Macro Pressure Builds
Recently, President Donald Trump had a speech at the White House in which he discussed the ongoing conflict in Iran. In this speech, he stated the U.S. army is now “very close” to completing “Operation Epic Fury,” which means the attacks on Iran will continue. Afterward, oil saw a rise while the crypto market dipped.
CoinMarketCap points to ETH falling from around $2,132 to nearly $2,040 on the 24-hour chart. This is just a continuation of the downtrend for Ethereum, which saw it drop nearly 5% in the past week alone. Given the current market environment, a short-term decline in price is not shocking for Ethereum.
Network Growth Paints A Different Picture
The on-chain metrics for Ethereum tell a different story than the bearish price movement. Notably, Santiment pointed out that the Ethereum network is still near its all-time high levels. As per their data, there are around 788,000 active daily addresses interacting on the Ethereum network.
Technical Indicators Still Flash Sell Signals
Even though the fundamentals are strong, the technical indicators for Ethereum have yet to follow. According to Investing.com data, the 14-day RSI signal has a value of 34 for ETH. This is slightly above the oversold region, but it is still below 50. This shows that selling momentum is currently stronger than buying momentum.
Additionally, the MACD (12,26) indicator is also flashing a sell signal. It currently has a value of -15, which indicates that the short-term EMA is lower than the long-term EMA for ETH. In other words, bearish momentum could be on the rise and pushing the value down further.
What This Could Mean Long Term
Although the value of Ethereum has been dropping recently, the network activity is still as high as it used to be and even approaching new all-time highs. This is a positive development as more users adopting the network means more transactions and more value in the long run.
What is evident is that interest in the Ethereum network is not dying. But the ETH price needs to see macro pressure relief for it to rise again. This may come if Donald Trump announces an end to the attacks on Iran. The upcoming weeks are going to be extremely important for Ethereum.