Ethereum, Bitcoin's sister cryptocurrency and closest competitor may be breaking free from the general market's clutch and may be showing some of the first-ever signs of extreme bullishness over the medium to long term.
According to recent developments, several on-chain metrics on ETH are starting to show that a lot is going on under the hood, despite the cryptocurrency's apparent price sluggishness.
And in this article, we will go over everything you need to know, and why ETH's price may soon follow its impressive on-chain metrics.
According to a recent tweet from Santiment, the ETH network saw a massive uptick of 1,089,893 daily active addresses on Wednesday alone.
Santiment in the tweet, mentioned that this uptick is now regarded as the second largest unique wallet uptick in ETH's history, with the largest being December 9, 2022, when Ether retested its losses from the post-2021 bad market.
To put things more into perspective, here's what the actual chart looks like:
Notice the particularly long histogram on the far right?
Ethereum's uptick in daily active addresses means that more and more people are transacting with ETH. As a result, ETH's trading volumes, volatility and other metrics are bound to be affected positively.
According to the experts at Santiment, there will likely be more volatility in ETH value, making the chances of a price recovery even better.
Ethereum chart has been in the spotlight very often this year, Ark Invest and 21 Shares recently applied for a first-of-its-kind Ethererum-based ETF in the United States this month.
Because of this, it is not hard to imagine why ETH has experienced an uptick so far and is now showing massive signs of a possible trend reversal on its network, at least.
Analysts have put the approval of an Ethereum ETF somewhere around mid-2024, making it extremely likely that ETH's bullishness is only just beginning.
ETH is trading only a hair length above the $1,627 support, at $1,634 at the time of writing according to CoinMarketCap.
This is the case, after the cryptocurrency rallied by 2% over the last day, from $1,597 to where it now sits.
Ethereum's chart, however, shows some interesting things, as far as a technical standpoint goes.
The chart above shows ETH in an ascending wedge.
Ascending wedges are bearish formations that show up during an uptrend and warn of a coming trend reversal to the underside.
Furthermore, there is a very obvious death cross between its 50 and 200-day moving averages, which is also a bearish sign.
This is without mentioning the superstitious (and almost logical) belief among crypto traders and investors, that September are generally a bearish month.
On the bright side, however, Ethereum's low price and its very impressive on-chain metrics may indicate that the bulls are planning to buy the dips massively.
This might do a lot to send ETH into a speedy and long-lasting price recovery, even if a dip happens
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.