Ethereum’s Daily Active Addresses Reach Second ATH: Another Bullish Signal?

Ethereum’s Daily Active Addresses Reach Second ATH: Another Bullish Signal?

Key Insights

  • Ethereum is showing signs of bullishness, despite the general market's sluggishness.
  • Ethereum's daily active addresses have seen a massive uptick, which is a positive sign for the network.
  • Institutional interest in ETH is increasing, which is another bullish indicator.
  • Ethereum's chart is showing some bearish signs, but the on-chain metrics are still positive.
  • The low price of ETH could attract buyers, which could potentially send the price higher.

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.

Ethereum's Daily Active Addresses Come Alive

According to a recent tweet from Santiment, the ETH network saw a massive uptick of 1,089,893 daily active addresses on Wednesday alone.

The Ethereum network just saw 1,089,893 unique wallets
The Ethereum network just saw 1,089,893 unique wallets

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:

ETH's number of daily active addresses | Source: <a href='https://app.santiment.net/charts/PQF5kTKM__sCl' target='_blank' rel='noreferrer noopener'><u>Santiment</u></a>
ETH's number of daily active addresses | Source: Santiment

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's Institutional Interest

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.

Ethereum (ETH) Price Analysis

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 price
Ethereum's price

Ethereum's chart, however, shows some interesting things, as far as a technical standpoint goes.

Ethereum price chart
Ethereum price chart

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.

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