While numerous cryptocurrencies are experiencing significant downturns due to broader market volatility, the Ethereum (ETH) network is witnessing a substantial growth surge. This surge has propelled Ethereum to its highest levels in four months, sparking speculations about a potential subsequent price increase.
Ethereum Network Sees Explosive Growth
On September 9, Santiment, a renowned market intelligence platform, highlighted a positive shift in the Ethereum network. According to data from Sanbase Pro, the Ethereum network has seen a notable increase in growth levels, indicating 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 an impressive rise in the number of daily new wallets on the network. Typically, growth in the Ethereum network is indicated by the number of new addresses created. On September 8, approximately 126,210 wallets were created on the Ethereum network. Despite Sundays generally being the least active day of the week, the network recorded its highest growth surge in four months, setting a new milestone.
This sudden rise in new wallet addresses suggests increased participation and interaction with the Ethereum network, which could signify 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 anticipates this surge to trigger a price bounce from the $2,200 to $2,300 range for ETH. Currently, the price of ETH is slightly above this range, at $3,314. With its recent surge in network growth, its value could experience 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. The analyst highlighted a “double bottom” pattern, characterized by 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 on the horizon 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 known as ‘Crypto Rover’ on X has revealed that Ethereum has been down 3.59% year-to-date. Additionally, popular analyst Ali Martinez noted that Ethereum whales might have lost interest in the cryptocurrency, as they stopped accumulating ETH in early July and have since shifted to selling or redistributing their holdings.
Despite this market trend, Trader Tardigrade asserts that there is a high chance of a massive price pump coming soon for Ethereum. The analyst suggests that this pump could propel Ethereum’s price to $3,900.
