The online collection of coarse-grained traffic information, such as the total number of flows, is gaining in importance due to a wide range of applications, such as congestion control and network security. In this paper, we focus on an active queue management scheme called SRED since it estimates the number of active flows and uses the quantity to indicate the level of congestion. However, SRED has several limitations, such as instability in estimating the number of active flows and underestimation of active flows in the presence of non-responsive traffic. We present a Markov model to examine the capability of SRED in estimating the number of flows. We show how the SRED cache hit rate can be used to quantify the number of active flows. We then propose a modified SRED scheme, called hash-based two-level caching (HaTCh), which uses hashing and a two-level caching mechanism to accurately estimate the number of active flows under various workloads. Simulation results indicate that the proposed scheme provides a more accurate estimation of the number of active flows than SRED, stabilizes the estimation with respect to workload fluctuations, and prevents performance degradation by efficiently isolating non-responsive flows.