Ethereum Network Growth Reaches Four-Month High: What Does It Mean for ETH Price?

Key Takeaways:

• Ethereum network experiences its highest growth in four months: With over 126,000 new wallet addresses created on September 8, signaling renewed interest and activity within the network. This surge is particularly notable given that Sundays are usually the least active days for network growth.
• Santiment data suggests the spike in network activity: This could signal a bullish momentum for Ethereum, with the market intelligence platform predicting a potential price rebound between $2,200 and $2,300. This growth indicates increased user engagement and utility on the network.
• A “double-bottom” pattern identified on Ethereum’s price chart: This is seen as a bullish indicator by analysts. The pattern, characterized by a “W” shape, often signifies the end of a downtrend, leading to a potential reversal in Ethereum’s price trajectory.
• Whale activity on Ethereum has significantly declined: Since July 2024, according to analyst Ali Martinez. Large ETH holders, or whales, have shifted from accumulating to selling or redistributing their holdings, which could impact short-term price movements.
• Despite recent market trends and volatility: Analysts like Trader Tardigrade are optimistic about Ethereum’s future price action. The analyst forecasts a major price pump in the coming months, potentially pushing Ethereum’s value to as high as $3,900.

While the broader crypto market faces volatility, Ethereum price stands out with a significant surge in its network activity. This development, hitting its highest growth level in four months, has raised questions about whether a price rally for ETH could follow. Let’s explore the latest growth data and the potential impact on Ethereum’s price in the coming months.

Ethereum Network Growth on the Rise

On September 9, market intelligence platform Santiment revealed notable growth in the Ethereum network through a post on X (formerly Twitter). According to data from Sanbase Pro, Ethereum’s network growth has surged to levels not seen in four months. The primary metric highlighting this growth is the increase in the number of new daily wallet addresses created on the network.

📈 Ethereum has just hit a 4-month high in network growth, on a day (Sunday) that is traditionally the least active of the week. 126,210 new wallets created is indicative of rising network utility and anticipated price bounces from the $2,200-$2,300 level. pic.twitter.com/zQaKbBdznK

— Santiment (@santimentfeed) September 9, 2024

As of September 8, 2024, approximately 126,210 new wallets were created on the Ethereum network—a remarkable figure, especially given that Sundays are typically the least active days for crypto transactions. The sudden spike suggests that more users are joining and interacting with the Ethereum ecosystem, which could signal growing utility and renewed interest in the blockchain platform.

Bullish Momentum Building?

This spike in new wallets has sparked speculations about a potential upward price movement for ETH price. According to Santiment, increased network activity often correlates with price rallies, as higher user engagement can drive demand and enhance the Ethereum price. Currently, Ethereum price sits slightly above the $2,300 range, but the ongoing network growth could lead to a more significant price surge, potentially pushing it toward new highs.

Santiment’s analysis suggests that this positive momentum could result in Ethereum price bouncing between the $2,200 and $2,300 levels, possibly leading to a larger price rally. As Ethereum continues to witness growth in its user base and activity, bullish investors are keeping an eye on these critical price levels.

Technical Indicators: Double-Bottom Pattern

Adding to the optimism, prominent crypto analyst Trader Tardigrade identified a bullish technical indicator on Ethereum price chart. Known as the “double bottom” pattern, this structure is often considered a strong sign of a trend reversal. The pattern typically forms when an asset hits a low, rebounds, and then drops back to the same low level before rising again. In Ethereum’s case, the formation of this “W” shape indicates that the recent downtrend could be nearing its end.

ETH/USD | Source: TradingView

A reversal following the double-bottom pattern could lead to a significant price bounce, as seen in past market cycles. While Ethereum’s price has struggled with volatility in recent months, closely mirroring Bitcoin’s performance, this pattern suggests that a new bullish phase may be on the horizon.

Whale Activity: A Cause for Concern?

Despite the positive network growth, not all metrics are bullish for Ethereum price. Ali Martinez, another well-known analyst, pointed out a decline in whale activity. According to Martinez, Ethereum whales have been offloading their holdings since early July 2024, after previously accumulating large amounts of ETH price. This shift in behavior suggests that large investors may be taking profits or moving their assets into other cryptos, which could create downward pressure on Ethereum’s price.

Similarly, market expert ‘Crypto Rover’ highlighted that Ethereum has seen a 3.59% drop year-to-date, adding to concerns that the network’s recent growth surge may not be enough to overcome broader market challenges. However, despite these bearish signals, some analysts believe that the Ethereum network’s continued expansion will eventually trigger a substantial price rally.

Read On: Ethereum Price Prediction

Price Predictions: A Massive Pump Ahead?

Trader Tardigrade remains optimistic about Ethereum price’s future, predicting that the crypto could soon experience a massive price pump. The analyst speculates that Ethereum’s price could rise to as high as $3,900 in the near future, fueled by its network growth and the potential for renewed interest from retail investors. While Ethereum has faced challenges over the past year, its network fundamentals remain strong, offering hope for long-term growth.

Conclusion

Ethereum network growth hitting its highest point in four months is a promising sign for the blockchain’s future, particularly as more users engage with the ecosystem. While whale activity and broader market trends present challenges, technical indicators like the double-bottom pattern suggest that a price reversal could be on the way. If Ethereum continues on its current trajectory, a bullish rally toward $3,900 may not be far off. As always, investors should stay informed and monitor key metrics to make data-driven decisions in this volatile market.

Source: Bitcoinist