Ethereum (ETH), the second-largest blockchain network by market capitalization, is currently navigating through a period of short-term market uncertainty. A recent price correction has pushed it below the $1.7k mark.
However, despite this setback, Ethereum maintains its dominant position in the world of decentralized finance (DeFi) and smart contracts, with approximately $20 billion in total value locked (TVL).
Institutional Interest Grows
Institutional interest in Ethereum remains evident, with a noticeable surge in interest regarding spot exchange-traded funds (ETFs). Furthermore, the Ethereum network plays a pivotal role for many other blockchains, thanks to its Ethereum Virtual Machine (EVM) network.
As a result, the outlook for Ethereum appears largely positive, supported by its substantial valuation, liquidity, and robust trading volume.
Also Read: Ethereum Price Prediction: Will ETH Drop To 2022 Lows?
On-Chain Activity Soars
A recent report from market intelligence platform Santiment sheds light on Ethereum’s on-chain activity. On September 13, the number of daily active addresses for Ether reached an impressive 1,089,893. This surge represents the second-highest daily active address count in Ethereum’s history, with the highest count occurring on December 09, 2022, coinciding with Ether’s retest of its post-2021 bear market losses.
Santiment’s analysts predict that heightened volatility is likely to enter the Ether market, increasing the chances of a rebound. This surge in on-chain activity also signals a growing demand for this cryptocurrency.
The Bitcoin Influence
Turning to Ether’s price analysis, it’s important to note that despite Ethereum’s significant role and unique fundamentals, its price action remains heavily influenced by Bitcoin. Historically, the month of September, especially before Bitcoin’s halving events, has been considered bearish for the cryptocurrency market.
Therefore, Ethereum’s price is expected to continue its descent in the coming weeks, with the possibility of approaching the next support level at around $1.5k. Additionally, the digital asset faces notable selling pressure due to the occurrence of weekly and daily “death crosses” between the 50 and 200 Moving Averages (MA).
Read More: How did Bitcoin and Ethereum React to the CPI Report?