While many cryptocurrencies are experiencing significant declines due to broader market volatility, Ethereum (ETH) Network is experiencing a strong growth spurt, reaching its highest levels in four months. This notable increase has sparked speculation about the possibility of a further price increase.
Ethereum Network Experiences Explosive Growth
In an X (formerly Twitter) job On September 9, Santiment, a market intelligence platform, revealed a recent positive change in the Ethereum network. According to data from Sanbase Pro, the Ethereum network has seen a notable increase in its growth levelssignaling renewed activity and potential bullish momentum for the cryptocurrency.
Sharing a detailed chart illustrating ETH price movements and network growth over the past few months, Santiment revealed that the number of new daily wallets on the network has increased significantly. Ethereum network growth spurt 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 Sunday being typically the least active day of the week, the network still saw its highest growth in four months, setting a new milestone.
The sudden increase in the number of new wallet addresses perhaps suggests that more people are joining and interacting with the Ethereum network, which could indicate the network’s growing utility. Santiment interpreted this significant growth spurt as a sign of an impending rally in the ETH price.
The market intelligence platform expects this increase trigger a price rebound from the $2,200 to $2,300 range for ETH. ETH is already slightly above this range at $3,314, but with the recent surge in network growth, its value could see an even bigger jump upward momentum towards new highs.
Price outlook
Trader Tardigrade, a prominent crypto analyst, has identified a new pattern formation in the Ethereum price chart. In the chart, the analyst highlighted a “double bottom” pattern, which has a unique “W” structure. This technical pattern is often referred to as a bullish indicatorand occurs when the price of a cryptocurrency hits a low point, bounces back, and then falls again around the same point before rising again.
In the case of Ethereum, the formation of a double bottom pattern generally suggests that a downtrend may be ending. As a result, Trader Tardigrade believes that a potential price reversal could occur for the cryptocurrency. Over the past few months, Ethereum’s price has been on a downward trajectorycharacterized by high volatility and price fluctuations which reflect Bitcoin market trends.
A market expert identified as “Crypto Rover” on X has revealed that Ethereum has fallen 3.59% since the beginning of the year. Additionally, 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 started selling or redistributing their holdings.
Despite this market trend, Trader Tardigrade says there is a high probability that a massive price pump Ethereum is set to see a surge soon. The analyst suggests that this surge could propel the Ethereum price to $3,900.
Featured image created with Dall.E, chart by Tradingview.com
