Ethereum’s blockchain shows strong growth, with 130K new wallets added daily and a 4.24% increase in active addresses. This surge in user engagement highlights renewed appeal for Ethereum, setting the stage for a market revival and a positive price prediction trend.

Ethereum Saw Surge in Network Activity with 130,200 New Wallets Daily in December

It was the highest level of new wallet creation seen in eight months. The spike in trading came as ETH continued to try to get back towards $4K. This is a sign that interest in the blockchain was picking up again.

According to Santiment’s data, we saw a rise in new wallet creation for the past few weeks. In early December, this increase showed that Ethereum was growing more attractive.

User participation, which surged, was strong evidence of a possible shift in the broader cryptocurrency market centered around Ethereum, which was leading this recovery.

Source: santiment

With more and more users joining the ETH network, its blockchain experienced massive activity. This indicates that people are increasingly confident in the long-term prospects of blockchain.

Ethereum price prediction indicates it could climb higher levels if the spike in wallet creation could be used as a foundation for sustained growth.

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That renewed interest in the network could be exactly what helps the world’s greatest altcoin recover. That is if it were to continue picking up steam and close in on key resistance levels.

As Market Confidence Goes Up, So Does Ethereum’s Wallet Creation

Mirroring the BTC price bottom, Ethereum’s on-chain metrics also seemed to be indicative of strong momentum, with active addresses improving by 4.24%.

Here, a surge to what pointed to greater engagement with the network, marked a key sign of a healthy usage of a blockchain.

Ethereum seemed to have more active user participation compared to before and would reflect appreciation with respect to price prediction for the short-term.

As active addresses saw an uptick, new addresses have increased 2.65%, indicating that the adoption of Ethereum continues.

This growing number of new users showed just how Ethereum was becoming more popular and now more and more of a key player within the world of cryptocurrency.

When more users created new wallets, the blockchain was injecting more users into its database, making the blockchain even stronger and even more present in the market.

The reduction of zero balance addresses of 4.06% indicated an increase in network appreciation by users.

While inactive wallets decline, the network as a whole continued to grow because more users used Ethereum. The positive trends showed further support bullishness for ETH as adoption continued.

Ethereum Price Prediction: On-Chain Metrics Show Increasing Momentum

At the end of the day, Ethereum’s price stability is largely dictated by its key support levels. An important level for the short-term price action of Ethereum is now the support range of $3,700 to $3,810.

This range represents a large number of wallets that combined bought 4.6 million worth of ETH at these price points, serving as a very strong support base.

Ali’s analysis states that the amount of ETH purchased in this range is at 89.24% ‘in the money’ which suggests that the majority of investors have chalked this one up as a successful trade.

The strong backing behind these price levels kept ETH on its feet and prevented further decline. If ETH’s price stays over this interval, it could function as a cushion bolstering the current support zone and even increase the price.

Since Ethereum’s price could depend upon the ability maintained of holding these levels, the importance of this support range cannot be overstated.

If the price went below $3,700, there could be more selling pressure, as sellers could nip to exit their positions.

But if ETH sustained above $3,810, it could continue to increase, suggesting a bullish price trend.

⚠️Disclaimer

This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.

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