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

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As an experienced analyst, I find the recent price action of Ethereum (ETH) intriguing, especially in light of its impressive network growth. While it’s true that the ETH price has been under pressure, resulting in a 6% loss over the last week and trading below $3,000, the network expansion cannot be overlooked.

In the midst of a wider market downturn, the Ethereum (ETH) price has experienced significant selling pressure, causing it to dip below the $3,000 threshold. Over the past week, the ETH price has seen a decline of more than 6%, now trading at $2,942 with a market capitalization of $353 billion.

Despite a dismal month for Ethereum investors in April, the Ethereum network has shown robust growth. In fact, it underwent its most substantial expansion in over a year on April 29th, with approximately 139,560 new Ethereum addresses being added to the network.

As a crypto investor, I’m excited to share some intriguing news about Ethereum that surfaced towards the end of April. According to data from Santiment, an on-chain analytics firm, Ethereum reached a significant milestone. Specifically, on the 28th and 29th of April, approximately 266,600 new wallets were created on the network. This is the most substantial two-day surge in network growth since October 8th and 9th, 2022.

As an analyst, I’ve noticed a significant milestone in Ethereum’s network growth towards the end of April. Specifically, on the 28th and 29th, a remarkable number of 266,600 new wallets were created. This two-day surge in new wallet creation is the most substantial since October 8th and 9th, 2022. It’s clear that Ethereum’s user base continues to expand at an impressive rate, even as prices for Ether dip.

— Santiment (@santimentfeed) May 1, 2024

Will ETH Price Action Follow Network Growth?

As a crypto investor, I’ve noticed that Ethereum’s price action on the technical chart has been displaying a consolidation pattern in the form of a falling wedge. This means that the price has been contracting within this pattern, and as such, a significant break above the upper trendline could indicate a bullish shift in the market. Consequently, if Ethereum manages to surpass this resistance level, it may lead to further gains for the cryptocurrency.

As a crypto investor, I believe the Ethereum (ETH) price could surge by an additional 25% post-breakout, reaching a new high of around $4,250. However, it’s essential to keep in mind that the descending wedge pattern is still in play as the ETH price remains above the crucial support level of $2,900 within the 12-hour timeframe.

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

Photo: TradingView

In other words, with the RSI peaks decreasing, it’s possible that bearish momentum will take over, causing Ethereum’s price to fall below the $2,900 support level. This drop could reverse the bullish trend and lead to more sellers joining in.

As a crypto investor looking to open long positions on ETH, I would recommend waiting for the RSI (Relative Strength Index) to bounce back above the 50 level. This could signal a reversal and potentially trigger a price increase that pushes Ethereum above the lower boundary of its current pattern. A confirmed entry signal would be given by the closing of a 12-hour candlestick above $3,212.

Spot Ethereum ETFs Coming?

There’s been considerable debate surrounding the potential approval of Ethereum spot ETFs in the US by May 23. Nonetheless, some financial experts predict that the SEC may not grant approval this round but possibly by the end of 2024.

The Securities and Exchange Commission (SEC) has more recently contended that Ethereum (ETH), similar to XRP, should be classified as a “security.” This potential designation could pose significant obstacles in the process of approving a spot Ethereum Exchange-Traded Fund (ETF). Nevertheless, ConsenSys has filed a lawsuit against the SEC for declaring ETH as a security.

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2024-05-02 15:36