As cryptocurrencies stage an epic comeback following Fed’s announcement about its sweeping commitment to unlimited quantitative easing, ethereum is roaring back to life. On-chain metrics suggest that investors believe in the long-term potential of ETH and this is super bullish for the ethereum prices.
Ethereum’s Daily Active Addresses Soar To 9-Month High
On March 12, the day that is now popularly known as Black Thursday, ETH alongside other cryptocurrencies saw massive devaluations.
Since then, the crypto-assets have attempted to recoup some of the losses as the coronavirus pandemic continues to batter the global economy. ETH, in particular, has been showing signs of a full-fledged recovery in recent days. It’s up roughly 40% from the bottom.
According to cryptocurrency on-chain analytics firm Santiment, the number of daily active addresses on the ethereum network has been on a steady uptrend since the Black Thursday.
Daily active addresses (DAA) shows the number of unique network addresses taking part in transactions on any given day. Essentially, positive growth in this metric suggests that ethereum is “setting itself up for recovery”.
In other words, DAA “indicates the daily level of crowd interaction [or speculation] with a certain token. As we can see, there has been an impressive rise over the past week and a half with a large increase in transactions taking place on the ETH network, and daily active addresses,” Santiment observed.
In fact, ethereum’s daily active addresses spiked to a nine-month high of 395,000 on March 21. Before then, ethereum’s DAA had been fluctuating around 250,000 per day. As such, nearing 400,000 is a “promising development for ethereum’s mid/long-term prospects”.
Ethereum’s Robust Fundamentals Could Supercharge Recovery
Moreover, on March 18, the analytics firm opined that the ETH whales were back to accumulating just days after the brutal sell-off on March 12. Within the five days that followed Black Thursday, the top ETH holders had collectively added approximately 150,000 ETH. This is a clear sign of the renewed optimism among ethereum investors.
ETH is exchanging hands at $140.26 at press time, up 12.01% on a 24-hour adjusted timeframe. From a technical perspective, ETH looks strong and as we have seen above, the cryptocurrency is also flashing strong fundamentals. These strong fundamentals could light the fire under the bulls as ETH eyes further recovery.
A break above the $140 and $143 hurdles opens the door for a rally towards $150 in the near-term. Should the momentum continue, ETH may revisit the elusive $200 level next.