Examining activity on the Ethereum (ETH) chain, a report released by market intelligence platform Santiment revealed that the number of daily active Ethereum addresses has increased significantly, reaching approximately 1,089,893 on September 13.
This latest one soar Represents the second highest number of daily active addresses ever recorded in Ethereum history. The highest count occurred on December 9, 2022, which is consistent with Ethereum’s revaluation following its losses in the post-2021 bear market.
As a result, analysts at Santiment believe that volatility in the Ethereum market may increase, potentially leading to a recovery. Additionally, increased on-chain activity indicates growing demand for the underlying asset.
this #Ethereum The network just discovered 1,089,893 unique wallets acting as senders or receivers $ETH On Wednesday, it was the second-highest amount in the asset’s more than eight-year history. This historic anomaly could be the capitulation signal needed for a price rebound. pic.twitter.com/1dRnPCjxcA
— Santiment (@santimentfeed) September 14, 2023
Ethereum, the second-largest blockchain by market capitalization, is currently facing market instability after a recent price drop caused it to fall below the $1,700 threshold. Despite this, Ethereum has maintained its position in the DeFi ecosystem and smart contract space, with approximately $20 billion in total value locked (TVL).
Ethereum remains attractive to institutional investors, as evidenced by growing interest in spot ETFs. Additionally, the Ethereum network plays a central role among many blockchains due to its EVM network. Therefore, the outlook for the Ethereum network appears largely positive, supported by its massive valuation, liquidity, and strong trading activity.
When analyzing the price of Ethereum, it is worth noting that despite being a well-known altcoin with unique fundamentals, Ethereum’s price action is still heavily influenced by Bitcoin. Throughout history, September, especially leading up to the halving event, has been considered a bearish period for the cryptocurrency market.
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This may indicate that the price of Ethereum will continue to decline in the coming weeks, possibly approaching the next support level around $1,500. Additionally, the cryptocurrency is facing significant selling pressure as a weekly and daily death cross forms between the 50 and 200 moving averages (MA).
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