Record Number of Daily Active Ether Addresses Signal Potential Recovery
Ethereum's on-chain activity has seen a significant boost, with daily active Ether addresses reaching around 1,089,893 on Sept. 13, according to a report by market intelligence platform Santiment. This surge represents the second-highest number of daily active addresses ever recorded in Ethereum's history, with the highest count registered on Dec. 9, 2022, following Ether's reevaluation after the post-2021 bear market. Analysts at Santiment suggest that this increase in on-chain activity could lead to greater volatility in the Ether market and potentially spark a recovery. Furthermore, it indicates a growing demand for the underlying asset.
Ethereum Faces Market Instability but Remains Strong in DeFi Ecosystem
Ethereum, the second-largest blockchain by market capitalization, is currently experiencing market instability following a recent price decline that pushed it below the $1.7k threshold. However, Ethereum still maintains its position in the decentralized finance (DeFi) ecosystem and smart contract arena, with around $20 billion in total value locked (TVL). The network continues to attract institutional investors, evident in the growing interest in spot ETFs. Its central role in numerous blockchains, thanks to its EVM network, also contributes to its positive prospects. Ethereum's significant valuation, liquidity, and strong trading activity further support its position in the market.
Ethereum Price Movement Influenced by Bitcoin and Bearish September Trend
While Ethereum has unique fundamentals, its price movement is still significantly impacted by Bitcoin. Historically, September, especially before a halving event, has been a bearish period for the cryptocurrency market. This suggests that Ethereum's price may continue to decline in the coming weeks, possibly approaching the next support level at around $1.5k. Moreover, the cryptocurrency is facing substantial selling pressure as both weekly and daily death crosses form between the 50 and 200 Moving Averages (MA).
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