Analyzing the on-chain activity of Ethereum’s native cryptocurrency Ether (ETH), market intelligence platform Santiment has released a report revealing that the daily count of active Ether addresses surged significantly, reaching approximately 1,089,893 on September 13th.
This recent increase marks the second-highest daily active address count ever recorded in Ethereum’s history. The highest number was documented on December 9th, 2022, coinciding with Ether’s recovery from losses incurred during the post-2021 bear market.
Consequently, Santiment’s analysts suggest that the Ether market could witness heightened volatility, potentially paving the way for a resurgence. Moreover, this uptick in on-chain activity signifies a growing demand for the cryptocurrency.
Ethereum, whose native cryptocurrency ETH ranks as the second-largest by market capitalization, is currently navigating a period of immediate market volatility following a recent price decline that pushed it below the $1,700 mark. Nevertheless, Ethereum maintains a prominent position within the decentralized finance ecosystem and smart contract sphere, boasting approximately $20 billion in total value locked.
Institutional investors continue to find Ethereum attractive, evidenced by the increasing interest in spot exchange-traded funds (ETFs). Additionally, the Ethereum network plays a central role in numerous blockchain ecosystems, thanks to its Ethereum Virtual Machine network. Consequently, Ethereum’s outlook remains largely optimistic, supported by its substantial valuation, liquidity, and robust trading activity.
When assessing the price movement of Ether (ETH), it’s important to note that, despite being a prominent altcoin with unique fundamentals, ETH’s price is still significantly influenced by Bitcoin (BTC). Historically, the month of September, especially before a halving event, has been recognized as a bearish period for the overall cryptocurrency market.
This could imply that Ether’s price may persist in its downward trajectory in the weeks ahead, possibly approaching the next support threshold at around $1,500. Furthermore, the cryptocurrency is facing substantial selling pressure as both weekly and daily death crosses materialize between the 50-day and 200-day moving averages.