In the Ethereum network recently we have seen a revival of activityand the number of novel wallet addresses reached its highest level in eight months. On-chain data shows that an average of 130,200 novel Ethereum addresses are being created every day in December, a level of network activity not seen since April.
This augment in activity comes as Ethereum’s price looks to break the $4,000 price level, with the $5,000 price level also increasingly emerging.
Ethereum network activity reaches novel heights
Ethereum augment in the number of novel wallet addresses indicates a growing level of interest among users and investors. This captivating sentiment is revealed through the development of the web Santiment company recordthe leading supply chain analytics platform.
According to the Network Growth metric, the number of novel Ethereum addresses created has been increasing since the beginning of November. Since then, steady growth has seen the number of novel addresses doubling daily. In the current situation, an average of 130,200 novel addresses are created every day in the Ethereum network. Interestingly, the explosive growth of the Ethereum network is currently at its highest level in eight months, comparable to the activity seen in March and April.
The augment in Ethereum activity is also confirmed by data from IntoTheBlock, another company dealing with on-chain analytics. According to IntoTheBlock, transaction activity on the Ethereum blockchain is currently comparable to the level seen in March 2024, when the Ethereum price once again exceeded $4,000.
In particular, IntoTheBlock data shows vast transactions of $100,000 or more now total $68.23 billion over the past seven days, one of the highest weekly transaction volumes this year.
Could renewed interest push Ethereum price towards $5,000?
The renewed interest in Ethereum increases the possibility of the asset testing novel highs soon. Ethereum’s price has fluctuated between $4,000 and $2,220 for most of the year and has yet to reach novel all-time highs like Bitcoin and Solana, its top cryptocurrency peers.
In particular, it can be argued that Ethereum’s price has underperformed compared to other heavyweights such as Solana and XRP, despite having the largest share of the altcoin market.
However, becoming part of the network again could act as a much-needed boost to a forceful upward move. At the time of writing, Ethereum price is about to break above the $4,000 resistance level after retesting it over the last 24 hours. This is happening behind band of inflows to US Spot Ethereum ETFs, which reached $854.85 million last week, highest weekly inflow since launch.
The first step would be a sustained break above $4,000. If the Ethereum price can achieve this, it would open the door to hitting $5,000 before the end of 2024 or early 2025.
Featured image from CNBC, chart from TradingView
