Ethereum network explodes to 4-month high 
Cryptocurrency Sep 9, 2024 Share
Following a period of underperformance for Ethereum (ETH) compared to the wider cryptocurrency market, its network has just experienced an unexpected jump in the growth of crypto wallets, the highest in the last four months, and on a Sunday, which is typically the least active of the week.
Specifically, on September 8, 126,210 new crypto wallets appeared on the Ethereum network, marking the highest single day of growth activity since May 5 this year, according to the observations shared by blockchain and social metrics platform Santiment in an X post on September 9.
Ethereum network growth and price performance analysis. Source: Santiment
Ethereum bulls vs. bears
As the Santiment team highlighted, such a massive rise in the network growth in a single day could lead to a price increase of its token, explaining that it was “indicative of rising network utility and anticipated price bounces from the $2,200 – $2,300 level.”
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Furthermore, replying to a comment suggesting that elevated growth appears to mark local tops, the analysts stressed that “major rises in the network activity are more indicative of a price reversal,” adding that this “rise in network growth is more rare when prices are dropping.”
On the other hand, crypto trading expert Ali Martinez has recently noted that “Ethereum whales stopped accumulating ETH in early July” and have been “selling or redistributing their ETH holdings” since then, which could indicate bearish sentiment among the largest investors in the crypto sector.
Ethereum whale accumulation chart. Source: Ali Martinez
Ethereum price analysis
Indeed, the price of Ethereum has already started to move in a positive direction, gaining 1.36% in the last 24 hours, as it reduces its weekly losses to 4.82% and the decline on its monthly chart to 11.69%, currently changing hands at the price of $2,322.90, as per the latest data retrieved by Finbold.
Ethereum price 24-hour chart. Source: CoinMarketCap
All things considered, the recent Ethereum network growth rise could, indeed, be one of the factors causing the price of its token to recover, but doing one’s own research is critical when investing, as the winds in the crypto market can easily change direction.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.