New Addresses Created On Ethereum Reach 8-Month High At 130,000, Can Bullishness Push Price To $5,000?

The Ethereum network has recently witnessed a resurgence in activity, with new wallet addresses hitting an eight-month high. On-chain data shows that an average of 130,200 new Ethereum addresses are being created daily in December, a level of network activity not seen since April.

This resurgence in activity comes as the Ethereum price targets a break above the $4,000 price level, with the $5,000 price level also increasingly coming into view.

Ethereum’s Network Activity Hits New Heights

Ethereum’s uptick in new wallet addresses points to an increasing level of interest among users and investors. This interesting sentiment is revealed through the Network Growth metric from Santiment, a leading on-chain analytics platform. 

According to the Network Growth metric, the number of new Ethereum addresses created has been on the rise since the beginning of November. This steady growth has seen the daily new addresses double since then. As it stands, the Ethereum network is now seeing an average of 130,200 new addresses being created each day. Interestingly, the surge in Ethereum network growth is now at its highest level in eight months, rivalling the activity witnessed in March and April. 

Ethereum’s increase in activity is also supported by data from IntoTheBlock, another on-chain analytics company. According to IntoTheBlock, transaction activity on the Ethereum blockchain is now rivaling March 2024 levels, when the Ethereum price broke above $4,000 again.

Particularly, IntoTheBlock data shows that large transactions with a value of $100,000 or greater are current at $68.23 billion in the past seven days, one of its highest weekly transaction volumes this year.

Can Renewed Interest Push Ethereum Price Towards $5,000?

The rekindled interest in Ethereum raises the possibility of the asset testing new highs very soon. The Ethereum price has hovered between $4,000 and $2,220 for much of the year and has yet to break into new all-time high levels like Bitcoin and Solana, its top crypto counterparts.

Notably, you could argue that the Ethereum price has underperformed compared to other heavyweights like Solana and XRP, even though it has the largest share in the altcoin market.

However, renewed participation on the network could act as the much-needed boost for a strong move upward. At the time of writing, the Ethereum price is looking to break above resistance at $4,000, having retested it in the past 24 hours. This comes behind a streak of inflows into US-based Spot Ethereum ETFs, which witnessed an $854.85 million last week, its 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 up the door to reaching $5,000 before the end of 2024 or by early 2025.

Featured image from CNBC, chart from TradingView