Ethereum Unique Addresses Surge, but Price Rally Remains Uncertain
Date: 2023-09-17 Author: Dima Zakharov Categories: BLOCKCHAIN, CRYPTO PAYMENTS
After a prolonged bear market, the cryptocurrency market is finally showing signs of bullish enthusiasm. Amidst renewed excitement, the number of unique Ethereum wallets has reached its second-largest level since the network's inception.
On Wednesday, September 13, analysts from Santiment evaluated the growth in the number of unique wallets on the Ethereum network. According to their research, this current trend has affected both senders and receivers, making it the second-largest such increase in Ethereum's history.
The Bullish Signal
Santiment's analysis also suggested that this surge could reflect bullish activity, potentially shifting the overall market sentiment. Clarity might emerge from assessing liquidity flows, as the return of the bulls could entail a significant outflow of funds from exchanges, indicating a flow of liquidity into private wallets.
Data on Ethereum exchange flows demonstrated an influx dominating outflows, potentially indicating that the current liquidity flow in ETH aligns with a strong bullish movement.
Despite these facts, over the past three days, ETH's price has risen by 5% to $1635. A consistent price increase over three days is a first since June for the cryptocurrency.
Unique Addresses as a Volatility Indicator
The increase in the number of unique ETH addresses can be a reliable indicator of returning market volatility. However, it is still uncertain what the key market players have in mind.
Over the past 24 hours, the amount of Ether held in the largest wallets has reached a new weekly high. This can be seen as confirmation that crypto whales are still buying cryptocurrency at current levels.
Mixed Sentiments among Crypto Whales
Despite crypto whales shifting into an accumulation mode, the sentiment-weighted indicator around ETH suggests that these players aren't overly confident in the current rally. Some of them are still contributing to sales, thus limiting ETH's price potential.
According to supply distribution metrics, the number of addresses holding between 10,000 and 100,000 ETH has significantly decreased. The same trend applies to addresses with at least 1 million ETH. Other crypto whale wallets are accumulating the cryptocurrency.
The Lack of Consistency among Whales
Supply distribution suggests a lack of consistency and uniformity among crypto whales. This is another sign that the current rally might have limited momentum.
In conclusion, the current surge in the number of unique addresses doesn't necessarily guarantee a major rally. Contradictory blockchain data may indicate that ETH is likely not ready to abandon its recent bearish trends.
