Following months of sporadic and mostly declining network activity on top of the world’s second-largest blockchain, new wallet creation on Ethereum has picked up the pace once again over the past week or so.
At the same time, a few popular cryptocurrency analysts claimed that ETH could be on the verge of a substantial breakout toward $3,700.
CryptoPotato reported earlier this week that the Ethereum network activity has decreased to a yearly low, indicating that retail participation was clearly missing. Active sending addresses dropped toward 170,000, which history suggests that retail traders had either exited the market or are unwilling to transact.
Such declines are typically observed after the underlying asset has corrected for a long time, which has been the case with ETH for a few consecutive months. However, they can also showcase seller exhaustion with fresh demand on the cusp of revival if the number of active addresses starts to increase.
More recent data from Santiment suggest that this has been the case on a couple of occasions in the past two weeks. On December 2, the number of newly created ETH wallets skyrocketed to over 197,000, while the figure for December 15 stands at more than 195,000. These levels are even higher than the July peaks, shortly before the asset went on the run and jumped to a fresh ATH of nearly $5,000.
ETH’s price tumbled below $3,000 and $2,900 earlier this week, but it has managed to reclaim the latter and is close to doing the same to the former milestone. Some analysts remain optimistic that there’s a big upswing in the asset’s cards, with Merlijn The Trader saying, “This Ethereum Move Will Catch Everyone Off Guard.”
He compared the current setup to the 2015-2018 parabolic rally, showing that reaccumulation in recent months could open the door to another ETH surge against BTC. The largest altcoin trades at around 0.03 versus bitcoin, but his projection shows a potential surge to 0.12 – a level last seen in 2017 and 2018.
CW’s analysis showed ETH’s performance against the greenback, saying that the asset is “gathering energy after a trend reversal” that could send it flying to the next major sell wall at $3,700.
