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.
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.
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.
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.
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.
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