The second-largest cryptocurrency by market capitalization, Ethereum (ETH), has shown potential signs of price recovery following a significant drop in value over the past two years. Ethereum's value has decreased approximately 65% since its 2021 peak, prompting analysts to observe 'capitulation signs' amid six-month lows for ETH price.
On Thursday, the Ethereum network recorded over 1 million Daily Active Addresses (DAA) in a single day. This figure is the second-highest in the network's eight-year history and marks a surge in DAA, defined as unique addresses becoming active in a single day by summing up sending and receiving transactions from these unique addresses. Analysts at Santiment's Sanbase PRO have identified this activity as a "historic anomaly" that could potentially signal a price rebound.
Moreover, an increase in the number of sending addresses has been reported by Glassnode, reaching an eight-month high of 17,364. This data is considered more reliable than overall transaction activities as it can't be distorted by few addresses performing multiple transactions.
Despite the significant decrease over the past two years, Ethereum is currently trading at $1,620 per token, showing daily gains of 1.35%. This indicates a consolidation trend following the sharp drop on Sunday when prices fell below $1,550 per token.
However, despite these potential recovery signs, the overall sentiment in the cryptocurrency market remains bearish. The future performance of Ethereum will likely be influenced by news and developments within its ecosystem and broader macroeconomic factors. Market cycle theories suggest that following such capitulation, a price rebound is typically expected. However, whether this rebound will occur remains to be seen.
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