The ethereum network has recently <a target="_blank" href="https://www.newsbtc.com/news/ethereum/ethereum-accumulation-addresses-hit-78b-whats-next-for-eths-price/” target=”_blank” rel=”noopener nofollow”>we are witnessing a resurgence of activityand new wallet addresses hit an eight-month high. On-chain data shows that an average of 130,200 new ethereum addresses are created daily in December, a level of network activity not seen since April.
This resurgence in activity comes as ethereum price points to a break above the $4,000 price level, with the $5,000 price level also increasingly in sight.
ethereum network activity reaches new heights
ethereum <a target="_blank" href="https://www.newsbtc.com/analysis/eth/ethereum-price-breakout-3800/” target=”_blank” rel=”noopener nofollow”>increase in new wallet addresses points to a growing level of interest among users and investors. This interesting sentiment is revealed through Network Growth <a target="_blank" href="https://x.com/santimentfeed/status/1867662604010701047″ target=”_blank” rel=”noopener nofollow”>Santiment metrica leading on-chain analytics platform.
According to the network growth metric, the number of new ethereum addresses created has been increasing since early November. This constant growth has seen daily new addresses double since then. As it stands, the ethereum network now sees an average of 130,200 new addresses created each day. Interestingly, the surge in ethereum network growth is now at its highest level in eight months, rivaling the activity seen in March and April.
The increase in ethereum activity is also supported by data from IntoTheBlock, another on-chain analytics company. According to IntoTheBlock, transaction activity on the ethereum blockchain now rivals levels from March 2024, when the price of ethereum once again surpassed $4,000.
Particularly, <a target="_blank" href="https://app.intotheblock.com/coin/eth” target=”_blank” rel=”noopener nofollow”>IntoTheBlock Data shows that large transactions worth $100,000 or more are currently at $68.23 billion over the past seven days, one of its highest weekly transaction volumes this year.
Can renewed interest push ethereum price towards $5,000?
The revived interest in ethereum raises the possibility of the asset reaching new highs very soon. ethereum's price has fluctuated between $4,000 and $2,220 for much of the year and has yet to reach new all-time highs like bitcoin and Solana, its major crypto counterparts.
In particular, one could argue that ethereum price has underperformed other heavyweights like Solana and XRP, despite it having the largest altcoin market share.
However, renewed participation in the network could act as the much-needed impetus for a strong upward movement. At the time of writing, ethereum price is looking to break above the $4,000 resistance, having been retested in the past 24 hours. This comes after a <a target="_blank" href="https://sosovalue.com/assets/etf/us-eth-spot” target=”_blank” rel=”noopener nofollow”>streak of entries in US-based Spot ethereum ETFs, which recorded $854.85 million last week, its<a target="_blank" href="https://www.newsbtc.com/news/ethereum/ethereum-battles-bearish-retail-sentiment-amid-surging-etf-demand/” target=”_blank” rel=”noopener nofollow”> biggest weekly entry since its launch.
The first step would be <a target="_blank" href="https://www.newsbtc.com/news/ethereum/ethereum-analysts-eye-4100-target-as-eth-reclaims-key-support-level/” target=”_blank” rel=”noopener nofollow”>sustained break above $4,000. If ethereum price can achieve this, it would open the door to reaching $5,000 before the end of 2024 or early 2025.
Featured image from CNBC, chart from TradingView
