Ethereum Daily Addresses Hit 841K Amid Volatility Below $3,500

Ethereum Sees 841K Daily Users Despite Staying Below $3.5K As

Ethereum price daily active addresses soared to 841,100 this week, marking the highest level 

seen in over a year. This notable rise in network activity occurred shortly before ETH’s price slipped under the $3,500 mark, signaling heightened user engagement amid price volatility.

The data, sourced from Santiment and shared by analyst Ali, highlights a potential shift in investor behavior. 

The sharp increase in wallet activity may reflect growing market caution or speculative positioning. Despite the address surge, Eth faced a pullback, underscoring uncertainty in the broader crypto market.

Source: Ali chart, tweet

Arthur Hayes Sells Amid Ethereum Price Drop Prediction

Arthur Hayes, co-founder of BitMEX, has projected that Bitcoin could rally to $100,000 while Ethereum may plummet to $3,000. He attributes this potential volatility to the economic impact of the upcoming US Tariff Bill and tight market liquidity. 

Hayes shared this prediction on X, citing weakening global economic credit growth as a driving factor behind the expected price swings.

However, blockchain tracking reveals a contrasting move. In the last six hours, Hayes reportedly sold off 2,373 ETH worth $8.32 million, alongside 7.76 million ENA valued at $4.62 million, and 38.86 billion PEPE coins, equaling roughly $414,700. 

The significant liquidation raises eyebrows, prompting speculation on whether Hayes' bullish commentary aligns with a bearish trading strategy behind the scenes.

Whales Quietly Accumulate Ethereum at Scale

Ethereum whale addresses have significantly ramped up their accumulation of ETH, reaching levels not seen in recent years.

Data from CryptoQuant highlights a striking spike in inflows to so-called "accumulator" wallets. These wallets, typically linked to large holders or institutions, are showing a surge in activity. The chart reveals a sharp increase in accumulation that surpasses past trends, marking one of the most aggressive buying phases since 2018. 

Source: Tweet

Ethereum crypto analyst Trader Tardigrade has presented a chart that shows that the price of Ethereum is likely to form new price highs. The trend in the chart depicts the past patterns that are also quite bullish which depicts large rallies that have already taken place in previous cycles.

The analyst points out to the repetitive areas of cumulative accumulation and breakout impulses with green and pink lines. Ethereum may be due to a sharp rise soon as long as its behavior remains the same as in the past. The analysis also makes Ethereum a likely candidate to see a huge rise, drawing additional interest in the form of investors looking to replicate a market boom.

Will Ether Price Recover Soon?

Ethereum (ETH) continues to struggle as it trades near $3,446 on August 2. 

Further support for bearish bias is given by the technical indicators The Moving Average Convergence Divergence (MACD) indicates a progressively negative histogram. The MACD line is significantly below the signal line indicating that there is persistence in the downside momentum.

The relative strength index (RSI) is at 25.95, which is comfortably within the oversold territory. This shows that the asset has experienced a high selling pressure and it is likely to experience a bounce in the short-term.

ETH bulls need to hold the support at 3,200 to avoid extensive losses. Otherwise, the decline towards the $3,000 area may become a possibility. On the other hand, the markets will stabilize on reclaiming $3,500 and provide bulls with a fighting edge to retest higher prices.