Bullish Outlook For ETH As Active Addresses Soar Past 600,000

Ethereum’s Active Addresses Hit 2-Year Low; Is A Bearish Storm Brewing?

Ethereum has roused mixed expectations in the markets of late. The second largest crypto asset fell to $1,701 today. This decline follows an encouraging comeback of the asset put up against the bears that began on July 18. Despite the price drop, a new bullish metric has surfaced for ETH – daily active addresses have risen above 600k for the first time since May.

ETH daily addresses never crossed 500k in June

According to a chart provided by investment research platform YCharts, the daily active addresses transacting with ETH rose to 607k on July 25 and have since remained relatively stable. This value indicates a 23.87% increase from the 475k value recorded on July 24. 

The daily active addresses metric indicates the daily amount of unique addresses that are transacted on the ETH network as receivers and senders. The metric has been historically associated with price movements, surging when an asset’s price is either witnessing a rally or being primed for one and falling when prices fail.

The daily active addresses had remained relatively low the past month as the markets felt the coldest touch of the Crypto Winter. Daily dynamic addresses fell to 392k on June 5 before bouncing back to 428k the next day. Since it had remained stable, it never got to 500k in June.

The beginning of July saw the metric rise to 514k as a positive outlook dominated the crypto markets, influenced by recovering assets. Despite the slight price drop, active addresses are accumulating, especially as we approach the Merge.

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Sentiments for ETH are a mixture of negative and positive outlooks

ETH sentiments have been a mixture of negative and positive perspectives of late, following the recent downward movement. The ETH Fund Premium indicates that investors in ETH-related funds and trusts have a weak buying sentiment, showing a value of -22.6.

While the ETH Fear and Greed Index has dropped to 40 from the value of 49 witnessed yesterday, this is still an improvement from the 26 recorded a month back. Additionally, US institutional investors appear to have relatively intense buying pressure, the ETH Coinbase Premium Index indicates.