Ethereum’s Surge in Daily Active Addresses: ETH Price Rebound on the Horizon?

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Ethereum (ETH), the second-largest blockchain network by market capitalization, currently faces short-term market uncertainty following its recent price correction, which brought it below the $1.7k mark. Despite this, Ethereum remains the undisputed king of the DeFi ecosystem and smart contracts, boasting approximately $20 billion in total value locked (TVL).

It continues to allure institutional investors, as evidenced by the recent surge in spot ETF interest. Moreover, the Ethereum network remains a pivotal focal point for many blockchains due to its EVM network. Consequently, the outlook for the Ethereum network appears predominantly bullish, buoyed by its substantial valuation, liquidity, and robust trading volume.

Analyzing Ethereum’s on-chain activity, market intelligence platform Santiment’s report reveals that the number of daily active addresses for Ether surged to approximately 1,089,893 on September 13. Remarkably, this recent spike marks the second-highest daily active address count in Ethereum’s history. The highest count was recorded on December 09, 2022, coinciding with Ether’s retest of its post-2021 bear market losses.

Consequently, Santiment’s analysts conclude that heightened volatility is likely to enter the Ether market, with a strong possibility of a rebound. Furthermore, this surge in on-chain activity signals increased demand for the underlying asset.

Regarding Ether’s price analysis, despite its status as a major altcoin with its own internal fundamentals, Ethereum’s price action remains significantly influenced by Bitcoin. Historically, September, especially pre-halving, has been identified as a bearish month for the cryptocurrency market.

As such, Ethereum’s price is anticipated to continue its descent in the coming weeks, possibly approaching the next support level of around $1.5k. Additionally, the digital asset faces substantial selling pressure due to the occurrence of weekly and daily death crosses between the 50 and 200 Moving Averages (MA).