According to a report by Santiment, Ethereum’s on-chain activity has shown a significant increase, with daily active Ether addresses reaching approximately 1,089,893 on September 13th.
This recent surge represents the second-highest number of daily active addresses ever recorded in Ethereum’s history. The highest count was seen on December 9, 2022, coinciding with Ether’s recovery from the post-2021 bear market.
As a result, analysts at Santiment believe that the Ethereum market may experience increased volatility, potentially leading to a rebound. Furthermore, this rise in on-chain activity indicates a growing demand for Ethereum.
The #Ethereum network just saw 1,089,893 unique wallets acting as a sender or receiver of $ETH on Wednesday, the 2nd highest amount in the asset’s 8+ year history. This historic anomaly could be the capitulation signal needed for prices to rebound. pic.twitter.com/1dRnPCjxcA
— Santiment (@santimentfeed) September 14, 2023
Ethereum, the second-largest blockchain by market capitalization, is currently experiencing market instability following a recent price decline that pushed it below the $1.7k threshold. However, Ethereum remains prominent in the DeFi ecosystem and smart contract arena, with a total value locked (TVL) of around $20 billion.
Institutional investors find Ethereum attractive, as evidenced by the growing interest in spot ETFs. Additionally, the Ethereum network plays a central role in numerous blockchains due to its EVM network. Therefore, the future of the Ethereum network appears promising, supported by its high valuation, liquidity, and strong trading activity.
When analyzing the price of Ether, it’s important to note that despite being a prominent altcoin with unique fundamentals, Ethereum’s price movement is still significantly influenced by Bitcoin. Historically, September, especially before a halving event, has been a bearish period for the cryptocurrency market.
Related: Nasdaq’s Hashdex mixed Ether ETF filing joins crypto ETF race
This suggests that Ethereum’s price may continue to decline in the coming weeks, potentially approaching the next support level around $1.5k. Moreover, the cryptocurrency is facing substantial selling pressure as weekly and daily death crosses form between the 50 and 200 Moving Averages (MA).
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