On-chain data shows that the number of active Ethereum addresses recently hit a new all-time high. Here’s what happened in the past when the metric reached such high values.
Ethereum Active Addresses Reach New All-Time High
As one analyst pointed out in a CryptoQuant Publisha signal that has typically been bearish for the crypto price has been triggered recently.
There “active addresses” is an indicator that measures the total number of Ethereum wallet addresses that have shown some movement on a given day. The metric takes into account both senders and receivers.
When the value of this metric increases, it means that an increasing number of addresses are showing some activity right now. Particularly high values can be a sign of high activity on the part of retail investors.
On the other hand, the low values of the indicator suggest that there are not too many Ethereum wallets moving at the moment.
Now, here is a chart that shows the trend of active ETH addresses over the past few years:
The value of the metric seems to have been pretty high in recent days | Source: CryptoQuant
In the chart above, the post quant marked relevant trend points for active Ethereum addresses.
It seems that every time the indicator broke above the “575k active addresses” level, the price of the crypto recorded a local top.
The metric recently observed a very sharp spike and settled into a new ATH. The last all-time high occurred during the 2017 bull run and coincided with the rally peak.
If the past trend is anything to consider, then the latest never-before-seen surge in values could also prove bearish for the coin this time around.
Normally, one would think that a large amount of addresses should rather be bullish because it shows high investor activity. However, the analyst believes this is not the case.
The value of the metric gives indications of the type of investors active in the market at the moment. According to the quant, the latest push could come from investors getting into crypto after learning about the merge and the recent upward momentum that Ethereum has benefited from.
At the time of writing, The price of Ethereum is floating around $1,600, up 14% in the past seven days. Over the past month, the crypto has gained 51% in value.
Below is a chart that shows the price trend of the coin over the past five days.
Looks like the value of the crypto has slid down over the last couple of days | Source: ETHUSD on TradingView
Featured image from Choong Deng Xiang on Unsplash.com, charts from TradingView.com, CryptoQuant.com