On-chain data shows that the number of active Ethereum addresses recently rose to a new all-time high. Here’s what happened in the past when the scale reached such high values.
Active Ethereum Addresses Rise to an All-New High
As pointed out by an analyst at CryptoQuant Mailwhich is a usually bearish signal relative to the price of the cryptocurrency has fallen recently.
The “active addresses“It is an indicator that measures the total number of Ethereum wallet addresses that showed some movement on any given day. The metric takes into account both senders and recipients.
When the value of this metric goes up, it means that an increasing number of titles are showing some activity at the moment. Particularly large values can be a sign of rising retail investor activity.
On the other hand, the low values of the indicator indicate that there are not many Ethereum wallets making moves at the moment.
Now, here is a chart showing the trend in active ETH addresses over the past few years:
The value of the metric seems to have been pretty high in recent days | Source: CryptoQuant
In the chart above, the volume from the post outlines relevant trend points for active Ethereum addresses.
It seems that whenever the index rises above the “575K active addresses” level, the cryptocurrency price has hit a local top.
The scale has recently noticed a very sharp rise and is tuned to a new ATH. The last all-time high occurred in 2017, and coincided with the peak of the rally.
If the past trend is anything to consider, the recent surge in unprecedented values may be bearish for the currency this time as well.
Normally, one would think that a large number of titles should be bullish instead because it shows high investor activity. However, the analyst believes that is not the case.
The value of the scale gives hints about the type of investors active in the market at the moment. Depending on the quantity, the recent surge could come from investors getting involved in cryptocurrency after learning more to merge And the recent bullish momentum enjoyed by Ethereum.
ETH . price
At the time of writing this report, Ethereum price It is floating around $1.6K, up 14% in the past seven days. Over the past month, the cryptocurrency has gained 51% in value.
Below is a chart showing the currency price trend over the past 5 days.
Looks like the value of the crypto has slid down over the last couple of days | Source: ETHUSD on TradingView
Featured image from Choong Deng Xiang on Unsplash.com, charts from TradingView.com, CryptoQuant.com