Surge in Ethereum Active Deposits Metric
The current values of the “active deposits” indicator are at their highest since September 2022 when the network transitioned towards a Proof-of-Stake (PoS) consensus system. The metric measures the total number of unique Ethereum addresses participating in exchange deposit transactions.
This restriction ensures that each address only contributes one transaction to provide a more accurate representation of market trends. A high value indicates many users are involved in deposit transactions, which can lead to selling-related purposes and ultimately lower prices.
In contrast, low values suggest few investors are making deposit transfers currently, indicating fewer sellers present within the market.
The chart below illustrates recent trends:
Source: Santiment on Twitter
The graph shows a spike in active deposits over several days as numerous users began making deposit transactions with exchanges. Prior to this increase, there was a decline suggesting reduced appetite for using exchanges among investors; therefore, this surge signals changing market sentimentality.
At its peak during this period, there were 9,193 unique deposit addresses on exchanges – comparable levels observed during November’s FTX crash resulting from volatile price movements. Therefore such high values may indicate potential future bearish volatility for Ethereum.
At the time of writing, Ethereum is tradingSponsored Product at around $1,900 – a 1% decrease over the past week.
Source: ETHUSD on TradingView
The featured image is from iStock.com and charts are from TradingView.com and Santiment.net.
#Ethereum #Bearish #Signal #Exchange #Deposits #Hit #8Month #High