Data from Santiment revealed that Ethereum’s network growth surged to a four-month high, with 126,210 new wallets created on September 8, 2024. This marked a significant increase in activity, especially considering that Sundays are typically the least active days in cryptocurrency markets. The rise in wallet creation suggests growing utility across Ethereum’s network, prompting speculation around future market movements, particularly in price levels near the $2,200 to $2,300 range.
📈 Ethereum has just hit a 4-month high in network growth, on a day (Sunday) that is traditionally the least active of the week. 126,210 new wallets created is indicative of rising network utility and anticipated price bounces from the $2,200-$2,300 level. pic.twitter.com/zQaKbBdznK
— Santiment (@santimentfeed) September 9, 2024
Unprecedented Network Growth on a Sunday
The spike in new wallets is a notable event, as Sundays generally exhibit lower network engagement and user activity in the crypto market. However, Ethereum’s network witnessed a substantial rise in the number of daily new wallets created. This unusual activity on a relatively quiet day in the market could indicate new users entering the Ethereum ecosystem or increased engagement from existing participants.
It may also be a sign of broader anticipation in the blockchain community for upcoming developments or events that could drive further adoption. Notably, this surge comes at a time when the market is closely observing price movements around lower levels.
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The chart from Santiment also shows Ethereum’s price movement alongside the network growth data. Since mid-July, Ethereum has experienced significant volatility, with notable drops and periods of stabilization.
By early August, the price saw a short recovery before declining again toward the end of the month. As of September 8, Ethereum’s price hovered near the $2,300 to $2,400 range, a level of interest for traders and analysts. This price level may offer potential support, depending on how network activity continues to unfold in the coming days.
Relationship to Price Action
The increase in new wallets often correlates with growing interest in Ethereum’s blockchain, typically signaling new participants joining the ecosystem. Whether driven by institutional interest or retail investors, spikes in wallet creation tend to precede major price movements.
Historically, this trend indicates potential price shifts, as new participants engage in various blockchain activities such as decentralized finance (DeFi) or staking. The timing of this wallet growth on a Sunday suggests possible anticipation of an event or trend that could emerge in the days that follow, potentially influencing Ethereum’s price trajectory. During this press, Ethereum was trading at $2,301, a 0.2% rise in the past 24 hours and a 5.9% decline in 7 days.
