Through an examination of Ether’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, whose native crypto, ETH, is the second-largest by market capitalization, is presently encountering immediate market instability after a recent price decline that pushed it below the $1,700 threshold. Nevertheless, Ethereum maintains its position in the decentralized finance ecosystem and smart contract arena, securing around $20 billion in total value locked.
Ethereum remains attractive to institutional investors, as seen in the growing interest in spot exchange-traded funds. Additionally, the Ethereum network holds a central role in numerous blockchains due to its Ethereum Virtual Machine network. As a result, Ethereum’s prospects seem largely optimistic, supported by the network’s 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, ETH’s price movement is still considerably impacted by Bitcoin (BTC). Throughout history, September, particularly before a halving event, has been recognized as a bearish period for the cryptocurrency market.
Related: Nasdaq’s Hashdex mixed Ether ETF filing joins crypto ETF race
This might suggest that Ether’s price will continue its decline in the upcoming weeks, potentially nearing the next support level at approximately $1,500. In addition, the cryptocurrency is encountering significant selling pressure as both weekly and daily death crosses form between the 50- and 200-day moving averages.
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