Ethereum's market performance is intrinsically linked to its decentralized network and user engagement. A critical metric for assessing this engagement is the number of unique active addresses, which serves as a proxy for overall market demand and valuation.

The 14-day moving average of Ethereum Active Addresses, encompassing both senders and receivers of ETH transactions, has shown a significant decline since late March 2024. This decrease points to reduced user activity and transaction volumes, reflecting bearish market sentiment and diminished investor participation.

For Ethereum to initiate a sustainable rally, a reversal in this trend is essential. An increase in active addresses would signal renewed interest and accumulation, potentially leading to a bullish market reversal.