Ethereum Daily Active Addresses Spike Above 1 Million, Is ETH Price Forming Bottom?

After a volatile beginning to the week, the world’s second-largest cryptocurrency Ethereum (ETH) is once again trading above $1,620 levels. Also, the on-chain activity for Ethereum is showing a healthy uptick.

On-chain data provider Santiment explain that on Wednesday, the Ethereum network recorded a remarkable event with 1,089,893 unique wallets participating as senders or receivers of ETH. This figure stands as the second-highest count in the asset’s history spanning over eight years. This unusual occurrence may serve as the capitulation signal required for prices to stage a recovery.

Looking at the upward direction, the $1,633 level is a significant threshold marked by the 100-day Exponential Moving Average (EMA), while the 50-day EMA at $1,613 provides short-term support.

A decisive move beyond these moving averages could confirm an advance towards $1,800. Conversely, a breach in either direction may initiate a new round of selling, potentially pushing the ETH price below $1,600, where it might find some respite around the $1,531 mark.

A Look At Ethereum (ETH) Options Data

Approximately 56,000 ETH options are set to expire soon, with a Put Call Ratio of 1.09, a max pain point of $1,650, and a notional value of $250 million, as per data from Greeks Live.

ETH has experienced minimal intraday fluctuations lately, with notable changes typically occurring only around Tuesdays. Recent market movements have been concentrated within one or two days each week, and the overall market activity has remained relatively subdued. Notably, there hasn’t been significant news from Token2049 to impact the market.

Interestingly, there has been a significant increase in ETH Put positions, leading to a gradual shift in skew back towards zero. Large-scale investors continue to bet on sustained low volatility, although trading activity has decreased somewhat this week.

It remains to be seen how Ethereum performs from here onwards. The ETH price has stayed volatile largely around the $1,600 level.