Ethereum's On-Chain Activity Spikes, Signaling Growing Demand and Potential Volatility
Summary:
Ethereum's daily active addresses reach the second-highest ever recorded, indicating growing demand and potential volatility. Despite recent market instability, Ethereum maintains its position in DeFi and smart contracts with $20 billion locked. The cryptocurrency remains attractive to institutional investors, but its price is impacted by Bitcoin. Analysts predict a potential decline to $1.5k and note significant selling pressure. Overall, Ethereum is considered undervalued but growing in power.
The number of active Ethereum addresses has witnessed a notable increase, reaching approximately 1,089,893 on September 13, according to a report by market intelligence platform Santiment. This surge represents the second-highest count ever recorded in Ethereum's history, with the highest being registered on December 9, 2022. Santiment analysts suggest that this uptick in on-chain activity could lead to increased volatility in the Ether market and potentially a recovery, indicating a growing demand for the cryptocurrency.
Despite recent market instability and a price decline below the $1.7k threshold, Ethereum continues to hold its position in the DeFi ecosystem and smart contract arena, with around $20 billion in total value locked. The cryptocurrency remains attractive to institutional investors, evidenced by the growing interest in spot ETFs. Moreover, the Ethereum network plays a central role in numerous blockchains due to its EVM network, further supporting its prospects.
However, it is important to note that Ethereum's price movement is still significantly influenced by Bitcoin. Historical patterns indicate that September, especially before a halving event, tends to be a bearish period for the overall cryptocurrency market. Consequently, there are expectations that Ethereum's price may continue to decline in the coming weeks, possibly approaching a support level of around $1.5k. Additionally, the cryptocurrency is currently facing substantial selling pressure as weekly and daily death crosses form between the 50 and 200 Moving Averages (MA).
According to DeFi Dad and Hall of Flame magazine, Ethereum is considered "woefully undervalued" but continues to grow in power, emphasizing its strong fundamentals and expanding influence.
Published At
9/14/2023 12:37:31 PM
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