Ethereum’s recent performance has been somewhat disappointing, with its value dropping by around 35% since reaching its peak in July and by 40% since its peak in 2024. While investors remain hopeful that the coin will rebound and break through local resistance, the current trend suggests that sellers have the upper hand in the short term.
The daily chart for Ethereum shows that the coin is struggling to gain momentum and surpass the $2,800 mark. Sellers have consistently thwarted any attempts to push the price higher. At present, Ethereum is unable to breach the $2,500 level and is experiencing selling pressure similar to that seen in late August. However, Santiment analysts have identified an intriguing development that counterbalances this bearish sentiment.
According to Santiment’s sentiments analysis platform, Ethereum has been registering more new users than Bitcoin. Despite the decline in prices, the Ethereum network has displayed remarkable resilience, especially when examining user growth metrics. Over the past three months, the number of unique Ethereum addresses has steadily increased, outpacing those of Bitcoin. However, Ethereum still trails behind the number of addresses associated with USDT, the fiat-pegged stablecoin.
As of September 3, Bitcoin had 54.18 million unique wallets, representing a 0.1% decrease over the past three months. In contrast, Ethereum boasted over 126.96 million addresses, indicating a 3.3% increase over the same period. USDT witnessed the highest growth rate among the three, with its number of addresses rising by 4%, totaling 5.99 million addresses.
The rise in new Ethereum users signals confidence in the network and potentially indicates an increase in adoption despite challenging market conditions. On the other hand, the surge in USDT addresses could suggest overall apprehensiveness among traders. As cryptocurrency prices contract, holders may choose to convert their holdings into USDT as a means of seeking stability.
A different perspective on this development is that more new users are eager to explore the world of cryptocurrencies. By holding USDT in custodial wallets or on exchanges like Binance, they can easily switch to Bitcoin or any other leading altcoin whenever they see fit.
Nevertheless, despite the growth in the number of users, Santiment analysts have noticed a decline in whale activity. The number of significant transactions conducted by whales has decreased since Q1 2024, which aligns with the peak of prices. The recent surge in prices and the approval of spot Bitcoin ETFs, particularly in the United States, sparked renewed interest and boosted whale activity. However, given the overall downturn in prices, Santiment analysts anticipate a further decline in whale activity. This outlook could change if there is significant volatility caused by Ethereum or Bitcoin prices surging above crucial liquidation levels in the near to medium term.