While many cryptocurrencies face notable declines amidst broader market fluctuations, the Ethereum (ETH) network is witnessing impressive growth, reaching its peak levels in the past four months. This significant rise has ignited speculation regarding a potential price escalation.
Ethereum Network Experiences Remarkable Growth
In a post on X (previously Twitter) dated September 9, Santiment, a market analytics platform, revealed a recent positive shift within the Ethereum network. Data from Sanbase Pro indicates that the Ethereum network has seen a significant boost in its growth metrics, reflecting renewed activity and potential bullish trends for the cryptocurrency.
Accompanying a comprehensive chart showcasing ETH’s price fluctuations and network growth over recent months, Santiment disclosed that the number of daily new wallets on the network has surged extensively. A growth surge within the Ethereum network is typically assessed by the volume of new addresses established on the network.
On September 8, around 126,210 wallets were registered on the Ethereum network. Interestingly, even though Sundays are generally the least active days of the week, the network achieved its highest growth rate in four months, thereby setting a new benchmark.
The abrupt increase in new wallet addresses may indicate that more individuals are joining and engaging with the Ethereum network, suggestive of the network’s growing utility. Santiment interprets this marked growth as a potential precursor to a rally in ETH’s price.
The market intelligence platform anticipates that this surge could trigger a price rebound from the $2,200 to $2,300 range for ETH. Currently, the price of ETH is slightly above this range, sitting at $3,314; nevertheless, with the recent uptick in network growth, its value could achieve even more substantial upward movement to new peaks.
Price Forecast
Trader Tardigrade, a well-known crypto analyst, has identified a new pattern in Ethereum’s price chart. The analyst pointed out a “double bottom” formation, which features a distinctive “W” shape. This technical pattern is often viewed as a bullish signal, occurring when the price of a cryptocurrency reaches a low point, rebounds, and then declines again around the same level before rising.
For Ethereum, the formation of a double-bottom pattern generally indicates that a downtrend may soon be over. Therefore, Trader Tardigrade posits that a price reversal could be imminent for the cryptocurrency. Over the preceding months, Ethereum has been on a downward path marked by significant volatility and price movements that closely align with Bitcoin’s market trends.
A market expert known as ‘Crypto Rover’ on X has reported that Ethereum is down 3.59% year-to-date. Furthermore, notable analyst Ali Martinez indicated that Ethereum whales may be losing interest in the cryptocurrency, having stopped their accumulation of ETH since early July, shifting instead to selling or reallocating their holdings.
Despite this market trend, Trader Tardigrade believes that a substantial price surge could be on the horizon for Ethereum. The analyst forecasts that this surge could elevate Ethereum’s price to $3,900.
Featured image generated with Dall.E, chart from Tradingview.com
