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Ethereum Network Growth Hits One-Year High, ETH Price to Follow Soon?

Ethereum Network Growth Hits One-Year High, ETH Price to Follow Soon?

Amid the broader market sell, the Ethereum (ETH) price has also witnessed strong selling pressure pushing it under $3,000 levels. Over the last week, the ETH price has lost over 6% and currently trading at $2,942 with a market cap of $353 billion.

Although the month of April has been pretty disappointing for ETH investors, the Ethereum network registered very strong growth in terms of new addresses created. Recently, Ethereum experienced its most significant network expansion in over a year, with approximately 139,560 new $ETH addresses created on April 29.

In a notable development for Ethereum, data from on-chain analytics firm Santiment reveals a significant milestone as April drew to a close. On the 28th and 29th of April, the network witnessed the creation of 266.6K new wallets, marking the most substantial two-day surge in network expansion since October 8th and 9th, 2022. This surge in network growth underscores Ethereum’s resilience, persisting despite recent declines in prices.

Will ETH Price Action Follow Network Growth?

On the technical chart, the Ethereum price has been consolidating in a falling wedge pattern. Thus, a decisive breakout above the upper trendline can trigger bullish action going ahead.

After the breakout, the Ethereum (ETH) price can rally another 25% moving all the way to $4,250. On the other hand, the descending wedge pattern continues to hold considering the fact that the ETH price continues to hold above $2,900 in the 12-hour timeframe.

Photo: TradingView

Conversely, given the declining peaks of the RSI, bearish momentum might prevail, potentially pushing the Ethereum price below the $2,900 support level where buyers are concentrated. This action could nullify the bullish reversal pattern and attract additional selling pressure.

For traders seeking to initiate long positions on ETH, it’s advisable to await the RSI reclaiming above the 50 mean level. This development could coincide with a rebound in Ethereum’s price above the lower boundary of the pattern. An entry signal would be validated by a 12-hour candlestick closure above $3,212.

Spot Ethereum ETFs Coming?

There’s been a lot of discussion in and around the approval of spot Ethereum ETFs in the U.S. The deadline for the approval is May 23. However, several market analysts believe that the SEC won’t give a green flag this time but eventually by the end of 2024.

The SEC has been recently arguing that similar to XRP, ETH also qualifies for a ‘security’ status. This could prove to be a major roadblock in the approval of the spot Ethereum ETF. However, ConsenSys has recently sued the SEC for labeling ETH as a security.

Ethereum Network Growth Hits One-Year High, ETH Price to Follow Soon?