Market intelligence platform Santiment reports a significant increase in daily active Ethereum addresses, suggesting potential increased volatility in the Ether market, along with growing demand for the cryptocurrency.
Surge in Daily Active Ethereum Addresses Points to Increased Volatility
Market intelligence platform Santiment has observed a notable surge in daily active addresses for Ethereum (ETH), indicating potential increased volatility in the Ether market. According to Santiment's report, on September 13, the count of daily active Ethereum addresses reached approximately 1,089,893, marking the second-highest number ever recorded in Ethereum's history. The highest count was reported on December 9, 2022, during a period of reevaluation following Ether's losses in the post-2021 bear market.
This uptick in daily active addresses suggests growing demand for Ethereum and may signal the potential for increased volatility in the market. Ethereum, with its native cryptocurrency Ether (ETH), currently faces market instability after a recent price decline that pushed it below the $1,700 threshold. However, Ethereum continues to maintain its position in the decentralized finance (DeFi) ecosystem and the smart contract space, with approximately $20 billion in total value locked.
Ethereum remains attractive to institutional investors, as evidenced by the rising interest in spot exchange-traded funds (ETFs). Additionally, Ethereum's Ethereum Virtual Machine (EVM) network plays a central role in various blockchains, further solidifying its importance in the crypto space. Despite the recent price challenges, Ethereum's long-term prospects appear positive, supported by its substantial valuation, liquidity, and robust trading activity.
It's important to note that Ethereum's price movements are still significantly influenced by Bitcoin (BTC), despite being a prominent altcoin with unique fundamentals. Historically, September, particularly before a Bitcoin halving event, has been associated with bearish tendencies in the cryptocurrency market.
Given this historical pattern, it's possible that Ethereum's price could continue to decline in the coming weeks, potentially approaching the next support level at approximately $1,500. Additionally, Ethereum faces selling pressure as both weekly and daily death crosses are forming between the 50-day and 200-day moving averages, which could impact its price trajectory.
(AMAKA NWAOKOCHA, CoinTelegraph, 2023)