Through an examination of Ethereum’s (ETH) on-chain activity, market intelligence platform Santiment has published a report indicating that the count of daily active Ether addresses experienced a notable increase, reaching around 1,089,893 on Sept. 13.
This recent upsurge represents the second-highest number of daily active addresses ever recorded in Ethereum’s history. The highest count was registered on Dec. 9, 2022, aligning with Ether’s reevaluation following its losses from the post-2021 bear market.
As a result, analysts at Santiment suggest that the Ether market may experience increased volatility, potentially leading to a recovery. Additionally, this uptick in on-chain activity indicates a growing demand for the underlying asset.
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. https://t.co/JF0g8vvBWs pic.twitter.com/1dRnPCjxcA
— Santiment (@santimentfeed) September 14, 2023
Ethereum, the second-largest blockchain by market capitalization, is presently encountering immediate market instability after a recent price decline that pushed it below the $1.7k threshold. Nevertheless, Ethereum maintains its position in the DeFi ecosystem and smart contract arena, securing around $20 billion in total value locked (TVL).
Ethereum remains attractive to institutional investors, as seen in the growing interest in spot ETFs. Additionally, the Ethereum network holds a central role in numerous blockchains due to its EVM network. As a result, the Ethereum network’s prospects seem largely optimistic, supported by its significant valuation, liquidity, and strong trading activity.
When it comes to analyzing Ether’s price, it’s worth noting that despite being a prominent altcoin with unique fundamentals, Ethereum’s price movement is still considerably impacted by Bitcoin. Throughout history, September, particularly before a halving event, has been recognized as a bearish period for the cryptocurrency market.
This might suggest that Ethereum’s price will continue its decline in the upcoming weeks, potentially nearing the next support level at approximately $1.5k. In addition, the cryptocurrency is encountering significant selling pressure as both weekly and daily death crosses form between the 50 and 200 Moving Averages (MA).