Analysts at market intelligence platform Santiment suggest that the Ether market may experience increased volatility, potentially leading to a recovery.
Through an examination of Ether’s
ETH
tickers down
$1,628
on-chain activity, market intelligence platform Santiment has published a report indicating that the
count of daily active Ether addresses experienced a notable increase, reaching around 1,089,893 on Sept. 13.
This recent upsurge represents the second-highest number of daily active addresses ever recorded in
Ethereum’s history. The highest count was registered on Dec. 9, 2022, aligning with Ether’s
reevaluation following its losses from the post-2021 bear market.
As a result, analysts at Santiment suggest that the Ether market may experience increased volatility,
potentially leading to a recovery. Additionally, this uptick in on-chain activity indicates a growing
demand for the underlying asset.
Ethereum, whose native crypto, ETH, is the second-largest by market capitalization, is presently
encountering immediate market instability after a recent price decline that pushed it below the
$1,700 threshold. Nevertheless, Ethereum maintains its position in the decentralized finance
ecosystem and smart contract arena, securing around $20 billion in total value locked.
Ethereum remains attractive to institutional investors, as seen in the growing interest in spot
exchange-traded funds. Additionally, the Ethereum network holds a central role in numerous
blockchains due to its Ethereum Virtual Machine network. As a result, Ethereum’s prospects seem
largely optimistic, supported by the network’s significant valuation, liquidity and strong trading activity.
When it comes to analyzing Ether’s price, it’s worth noting that, despite being a prominent altcoin
with unique fundamentals, ETH’s price movement is still considerably impacted by Bitcoin
BTC
tickers down
$26,661
. Throughout history, September, particularly before a halving event, has been recognized as a bearish period for the cryptocurrency market.
This might suggest that Ether’s price will continue its decline in the upcoming weeks, potentially
nearing the next support level at approximately $1,500. In addition, the cryptocurrency is encountering
significant selling pressure as both weekly and daily death crosses form between the 50- and 200-day moving averages.
