While numerous cryptocurrencies are experiencing significant downturns due to broader market volatility, the Ethereum (ETH) network is experiencing a substantial growth surge, hitting its highest levels in four months. This notable uptick has sparked speculations about the possibility of a subsequent price increase.
Ethereum Network Sees Explosive Growth
In an X (formerly Twitter) post on September 9, Santiment, a market intelligence platform, unveiled a recent positive change in the Ethereum network. According to data from Sanbase Pro, the Ethereum network has experienced a notable increase in its growth levels, signaling renewed activity and potential bullish momentum for the cryptocurrency.
Sharing a detailed chart depicting ETH’s price movements and network growth over the past few months, Santiment revealed that the number of daily new wallets on the network has soared dramatically. Typically, a growth surge in the Ethereum network is measured by the number of new addresses created on the network.
On September 8, approximately 126,210 wallets were created on the Ethereum network. Surprisingly, despite Sundays generally being the least active day of the week, the network still recorded its highest growth surge in four months, setting a new milestone.
The sudden rise in new wallet addresses possibly suggests that more people are joining and interacting with the Ethereum network, which could indicate the network’s rising utility. Santiment has interpreted this significant growth spurt as a sign of an impending rally in the price of ETH.
The market intelligence platform expects this surge to trigger a price bounce from the $2,200 and $2,300 range for ETH. The price of ETH is already sitting slightly above this range, at $3,314, however with its recent surge in network growth, its value could experience an even larger upward momentum to new highs.
The Price Outlook
Trader Tardigrade, a prominent crypto analyst has identified a new pattern formation in Ethereum’s price chart. In the chart, the analyst highlighted a “double bottom” pattern, which has a unique “W” structure. This technical pattern is often seen as a bullish indicator, and occurs when the price of a cryptocurrency hits a low point, rebounds and then drops again around the same point before rising.
In the case of Ethereum, the formation of a double-bottom pattern typically suggests that a downtrend may be ending. As a result, Trader Tardigrade believes that a potential price reversal could be coming for the cryptocurrency. Over the past few months, Ethereum’s price has been on a downward trajectory, characterized by sharp volatility and price fluctuations that closely mirror Bitcoin’s market trends.
A market expert identified as ‘Crypto Rover’ on X has revealed that Ethereum has been down 3.59% in the year to date. In addition, popular analyst Ali Martinez disclosed that Ethereum whales may have lost interest in the cryptocurrency, noting that they stopped accumulating ETH in early July and have since shifted to selling or redistributing their holdings.
Despite this market trend, Trader Tardigrade says that there is a high chance that a massive price pump is coming soon for Ethereum. The analyst suggests that this pump could propel Ethereum’s price to $3,900.
Featured image created with Dall.E, chart from Tradingview.com
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