Ethereum Network Expansion Reaches 4-Month Peak: Potential Impact on Price

The Ethereum (ETH) network has recently seen a surge in growth, reaching its highest levels in four months amid a broader market downturn affecting many other cryptocurrencies. This upswing has fueled speculation about a potential price increase for Ethereum.

Market intelligence platform Santiment highlighted this positive change in the Ethereum network in a recent post on X (formerly Twitter). According to data from Sanbase Pro, the Ethereum network has witnessed a significant increase in growth levels, indicating a resurgence in activity and potential bullish momentum for the cryptocurrency.

The surge in growth is evident from the substantial rise in the number of daily new wallets created on the Ethereum network. Typically, the growth of the Ethereum network is gauged by the number of new addresses generated on the network. On a notable day, approximately 126,210 wallets were created on the Ethereum network, marking the highest growth surge in four months despite it being a typically less active day of the week.

The increase in new wallet addresses suggests a growing interest and participation in the Ethereum network, hinting at its increasing utility. Santiment views this surge as a precursor to a potential rally in the price of ETH.

Santiment anticipates that this growth spurt could lead to a price bounce for ETH from the $2,200 and $2,300 range. Currently, the price of ETH sits slightly above this range at $3,314, but with the recent surge in network growth, there is potential for further upward momentum towards new highs.

Trader Tardigrade, a well-known crypto analyst, has identified a double-bottom pattern in Ethereum’s price chart, indicating a potential end to a downtrend and a possible price reversal for the cryptocurrency. This pattern is often viewed as a bullish indicator and could signal a positive turnaround for Ethereum.

Despite a 3.59% decline in Ethereum’s performance year-to-date, there is optimism among analysts for a significant price pump in the near future. Trader Tardigrade suggests that this pump could propel Ethereum’s price to $3,900, offering hope for a brighter outlook for the cryptocurrency.