Etheruem, a major altcoin, surpassed $3,200 recently and saw a significant rise in network activity. Data from on-chain sources shows that the Ethereum network witnessed its most substantial daily network expansion in nearly two years.
Growing Interest in Ethereum
A noteworthy event occurred on May 4, 2024, with the creation of 196,000 new Ethereum wallet addresses, the largest daily increase since October 8, 2022. This surge in new wallet addresses indicates a strong and increasing interest in Ethereum, suggesting a bullish trend.
Despite the price remaining below $3,200, the Ethereum network's resilience is conspicuous. The creation of numerous new wallet addresses within a day suggests a rise in new participants or heightened interest from existing ones, laying a sturdy foundation for potential future price hikes.
From a technical standpoint, Ethereum confronts a crucial juncture as it teeters on slipping below its 200-day Exponential Moving Average (EMA). A breach of this level might indicate a possible short-term decline.
Decline in Transaction Volume
Conversely, the dwindling transaction volume corresponding to the price decline might indicate a potential trend reversal. A decrease in volume amid a downtrend often signifies diminishing selling pressure. Given favorable conditions, this scenario could pave the way for an upturn.
A blend of robust network expansion and technical indicators paints a mixed picture for Ethereum. Although the price is currently facing mild downward pressure, the increase in new wallet addresses and the decline in volume hint at latent bullish prospects. Breaching the 200-day EMA level could catalyze an upward trend.
Per CoinMarketCap data, Ethereum was trading at $3,106, showing a 2.98% decrease in the past 24 hours. Over the last week, the altcoin king's price surged by 2%, notwithstanding an 8.18% drop over the last month.
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