It has been tough two years for Ethereum (ETH), losing around 65% of its value since 2021’s all-time high, and some holders could have been feeling it harder these days, with ‘capitulation signs’ amid six-month lows for ETH price, noted by analysts.

However, after the capitulation, there is usually a price rebound – at least, this is what most experts will agree upon on market cycle theories.

In that sense, analysts from the Santiment’s Sanbase PRO reported on September 14 another major capitulation signal in what they called a “historic anomaly” observed in the Ethereum Network

As reported, Ethereum hit over 1 million Daily Active Addresses (DAA) in a single day, which makes this the second all-time high for this metric in the network’s 8-year history.

ETH Daily Active Addresses “Ethereum has a massive spike in unique addresses interacting on Network, 2nd largest of all time”. Source: Santiment

Signaling capitulation for ETH
ETH Daily Active Addresses “Ethereum has a massive spike in unique addresses interacting on Network, 2nd largest of all time”. Source: Santiment

Capitulation signal on Ethereum’s Daily Active Addresses

Santiment’s analysts believe this “historic anomaly” could be seen as a huge “capitulation signal needed for prices to rebound”. This supports the thesis that ETH price could see a recovery in the near future, as many holders had to realize losses in what could be the end of a cycle.

DAA measures the number of unique addresses becoming active in a single day. Calculated by summing up sending and receiving transactions from these unique addresses, being more reliable data for the market’s sentiment than overall transaction activities, that could be inflated by a few addresses performing multiple sendings.

Notably, Glassnode spotted an increase in this general data, as the number of sending addresses also hit an 8-month high of 17,364 this morning.

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Capitulation signal? ETH number of sending addresses (hourly chart, 7d MA). Source: Glassnode
ETH number of sending addresses (hourly chart, 7d MA). Source: Glassnode

Ethereum price analysis

Meanwhile, ETH is trading at $1,620 by press time, with daily gains of 1.35%, already showing a consolidation behavior after the massive drop on September 12 that took its prices lower than $1,550 per token.

Ethereum 1-week price chart. Source: Finbold
Ethereum 1-week price chart. Source: Finbold

Nevertheless, the overall sentiment is still bearish in the crypto market. So, further price actions for the second largest cryptocurrency by market cap will also depend on news and developments related to the Ethereum ecosystem, as well as macro and microeconomics.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

The post This historic Ethereum anomaly could spark huge ETH price rebound appeared first on Finbold.

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Dennis is a business and financial writer, who had spent almost his entire life independently reporting on different business ventures with major impact on the US and global economy. Dennis places a special focus on examining tech stocks, biotech stocks all while investing a great part of his early hours to researching and writing on the companies in the US markets. Dennis has 15+ years of experience in financial markets.