Ethereum Market Update: On-chain activity surges to a two-year single-day high, ETH/USD jumps above $230

• The number of active ETH addresses reached a single-day high of 486,000 recently. 
• The last time Ethereum’s address activity was this high was in May 2018.
• Ethereum’s growing popularity is mostly due to the increasing interest in DeFi products. 

As per Santiment, the number of unique addresses interacting with Ethereum recently went through a massive spike, reaching a single-day high of 486,000. The last significant high was achieved on May 5th, 2018.

Ethereum’s growing popularity is mostly due to the increasing interest in DeFi products. As per DeFi Pulse, the total amount of value locked in DeFi has crossed $1.4 billion, with ETH accounting for the majority. From 2.62 million at the start of June, the amount of Ether locked in DeFi reached 3.1 million on June 29. 

However, some cryptocurrency experts believe decentralized finance may lead to unintended consequences. Waves CEO, Sasha Ivanov, earlier said that the growing interest in DeFi could lead to another “ICO bubble.”

DeFi is the future, but it’s going to be coming through a bubble part of the cycle now, which can harm its long-term development.

ETH/USD daily chart

ETH/USD jumped up from $225.60 to $230.94 after bouncing up from the SMA 50 curve. The price has lost momentum near the SMA 20 curve. The Elliott Oscillator has had seven straight red sessions, showing that the overall market sentiment is presently bearish.

The bulls need to conquer resistance levels at $232 (SMA 20), $238 and $243.40 (upper curve 20-day Bollinger Band). On the downside, healthy support lies at $227.54, $225.82 (SMA 50) and $220.68.