Analysts Reveal Ethereum’s Active Addresses Reach Second Highest in History

Ether’s On-Chain Activity

Santiment, a market intelligence platform, has released a report that examines Ethereum’s (ETH) on-chain activity. The report reveals that the daily active Ether addresses reached a peak of 1,089,893 on Sept. 13, which is the second-highest number ever recorded in Ethereum’s history. The highest count was on Dec. 9, 2022, following the 2021 bear market.

Analysts at Santiment suggest that the Ether market may experience increased volatility, leading to a potential recovery. Moreover, the growing demand for Ethereum’s native crypto, ETH, is evident from the uptick in on-chain activity.

Ethereum, whose crypto is the second-largest by market capitalization, is presently going through market instability after a price decline below $1,700. However, Ethereum still reigns in the decentralized finance ecosystem and smart contract arena with around $20 billion in total value locked.

The Growing Interest in Ethereum

Ethereum remains an attractive asset to institutional investors, as evidenced by the increasing interest in spot exchange-traded funds. Moreover, the Ethereum Virtual Machine network gives Ethereum a central role in various blockchains. As a result, Ethereum’s prospects appear to be largely optimistic, backed by the network’s high valuation, liquidity, and strong trading activity.

When considering Ether’s price, it should be noted that, although it is a notable altcoin with its own unique fundamentals, ETH’s price movements are still heavily influenced by Bitcoin (BTC). Historically, the month of September, particularly before a halving event, has been perceived as a bearish period for the cryptocurrency market.

This could imply that Ether’s price will continue to fall in the coming weeks, potentially reaching the next support level at around $1,500. Additionally, Ether is facing major selling pressure as both the weekly and daily death crosses form between the 50- and 200-day moving averages.

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