The Ethereum network is seeing a major resurgence, with activity levels reaching their highest point in four months. This surge has some analysts predicting a price increase for ETH.
New Wallets, New Hope?
The number of new wallets created on the Ethereum network has skyrocketed, particularly on September 8th, a day that usually sees lower activity. This suggests more people are joining the Ethereum ecosystem, potentially indicating a rise in its utility.
Santiment, a market intelligence platform, sees this growth as a bullish sign and expects ETH to bounce back from its recent price range of $2,200 to $2,300. While ETH is already trading above this range at $3,314, the network growth could push it even higher.
Technical Signals Point to a Potential Reversal
Trader Tardigrade, a well-known crypto analyst, has identified a “double bottom” pattern in Ethereum’s price chart. This pattern, resembling a “W” shape, is often seen as a bullish indicator, suggesting a potential end to the downtrend and a possible price reversal.
Ethereum’s Recent Challenges
Despite the positive signals, Ethereum has faced some challenges in recent months. Its price has been on a downward trend, mirroring Bitcoin’s volatility. Some analysts believe that large Ethereum holders (whales) have lost interest in the cryptocurrency, shifting from accumulation to selling or redistribution.
A Price Pump on the Horizon?
Despite these headwinds, Trader Tardigrade believes a significant price pump for Ethereum is on the horizon, potentially pushing the price to $3,900.
While the future of Ethereum’s price remains uncertain, the recent surge in network activity offers a glimmer of hope for those invested in the cryptocurrency. It will be interesting to see if this growth translates into a sustained price increase.
