The number of active Ethereum addresses has reached its highest level in the last 17 months

Data from China shows that Ethereum’s daily active address index is now at its highest level since May 2021 (May 1400); But after the market’s reaction to the increase in interest rates, can the growth of this index alone be enough to cross the $1,300 range?

Stagnation 637,000 unique addresses active daily

According to NewsBTC, a review of the data of Anchan Sentiment analysis company shows that Ethereum is currently witnessing the highest level of network activity in the last 17 months. Daily Active Addresses is an indicator that measures the total number of addresses that have sent or received Ethereum each day.

The growth of this indicator means that traders are active in the network. On the other hand, a drop in this index means a decrease in investor activity on that day.

The chart below shows the trend of the number of daily active Ethereum addresses over the past few years:

As you can see in the chart above, the number of daily active Ethereum addresses has increased over the past week. During this period of increased activity, an average of 637,000 Ethereum addresses were involved in moving coins on the network per day.

The last time this network saw such activity from investors goes back to May of last year; When the Ethereum price reached an all-time high of around $4,300 during the bull market in the first half of 2021.

Usually, an increase in daily active addresses means that investors are currently interested in trading Ethereum. Therefore, it is natural to see a huge growth in the activity of network addresses during profit harvesting periods such as the peak price in May 2021 (May 1400); Because many investors move their coins with the intention of selling.

In this case, the increase in address activity can be a bearish signal for Ethereum price; But also consider the fact that starting any uptrend requires a large number of traders. Ethereum’s bullish trend over the past few days (of course before the price crash following yesterday’s interest rate announcement), while the number of active network addresses has been huge, suggests that there are probably many interested buyers in the market now. This can be a sign that the latest increase in the price of Ethereum is sufficient support for the continuation of the trend; Because, in the past price rallies in this bearish market, we have not seen the growth of this index.

At the time of writing this article, the price of Ethereum, despite a 4% growth last week, has decreased by 2.75% in the last 24 hours and is trading in the range of $1,290. It seems that after the market’s reaction to the increase in interest rates and the continuation of the contractionary policies of the Federal Reserve, in the coming days we will only see an increase in the volatility of risky assets such as Bitcoin and Ethereum.