The number of active Ethereum addresses reached an all time high, according to data from on-chain. Here’s what happened in the past when the metric reached such high values.
Ethereum Active addresses reach a new all-time high
An analyst pointed this out in a CryptoQuant posting. A signal which has been historically bearish has seen a recent drop in the crypto price.
The “active addresses” is an indicator that measures the total number of Ethereum wallet addresses that showed some movement on any given day. This metric includes both receivers and senders.
This metric is a sign that more addresses have some activity. It increases in value when it goes up. A sign that retail investors are active is when the values are particularly high.
Low values on the indicator indicate that there are not too many Ethereum wallets making moves right at this moment.
Here’s a chart showing the trends in active addresses at ETH over the past few years.
Recent days seem to have seen a significant increase in the value of this metric. Source: CryptoQuant| Source: CryptoQuant
The graph above shows that the Quant from the Post has highlighted the points of interest for Ethereum active addresses.
It looks like whenever the indicator has risen above the “575k active addresses” level, the crypto’s price has registered a local top.
Recent spikes in the metric have created a new ATH. The last all-time high occurred back in the 2017 bull run and coincided with the rally’s top.
The past trends suggest that the current surge in values may be bearish.
Normally, it would be reasonable to believe that a high number of addresses is bullish because this indicates large investor activity. Analysts believe that this is not the case.
The metric’s value gives hints about what kind of investors are active in the market right now. According to the quant, the latest surge could be coming from investors who are FOMO’ing into the crypto after learning about the merge and the recent upwards momentum that Ethereum has enjoyed.
ETH price
At the time of writing, Ethereum’s price floats around $1.6k, up 14% in the last seven days. The crypto’s value has risen 51% over the last month.
The chart below shows how the currency’s price has changed over the past five days.
Source: ETHUSD on TradingView| Source: ETHUSD on TradingView
Choong Deng, Xiang featured image on Unsplash.com. Charts by TradingView.com. CryptoQuant.com.