Coinspeaker
Ethereum (ETH) Price Nears Correction Bottom as Network Growth Hits Four-month Peak
After an intensive bearish trend in the past few months, Ethereum (ETH) has reached a potential bottom, which could yield a major bull rally in the near term. Following last week’s dip, the large-cap altcoin, with a fully diluted valuation of about $277 billion and a daily average traded volume of around $11 billion, almost retested the correction low that was established on the August 5 market crash.
As a result, ETH price against the US dollar is currently retesting a crucial trendline support level, which has been forming since early 2023. A successful Ether price rebound from the current support level will outrightly lead to a rally toward its all-time high in the subsequent months.
Moreover, the ongoing economic shift, which will be accelerated by the anticipated Fed’s interest rate cut on September 18 and the upcoming general election, will trigger the next bull market phase. Additionally, Bitcoin dominance has been forming a macro reversal pattern, which will ultimately accelerate the crypto cash rotation to altcoins and catalyze the much-anticipated altseason.
Ethereum Experiences Surge in Network Growth
As the lead web3-focused blockchain, with more than $43 billion in Total Value Locked (TVL) and over $82 billion in stablecoins market cap, the Ethereum network has appealed to more users in the recent past. According to on-chain data analysis provided by Santiment, the network has registered palpable growth in the recent past with more than 126k new wallets created on Sunday.
📈 Ethereum has just hit a 4-month high in network growth, on a day (Sunday) that is traditionally the least active of the week. 126,210 new wallets created is indicative of rising network utility and anticipated price bounces from the $2,200-$2,300 level. pic.twitter.com/zQaKbBdznK
— Santiment (@santimentfeed) September 9, 2024
The overall impact of Ethereum’s rising adoption is a bullish outlook in the near term. Furthermore, the Ethereum network is the top tokenization ecosystem used by most institutional investors.
Additionally, the recent approval of spot Ether ETFs in the United States has significantly improved the altcoin’s fundamentals.
Mixed Reactions from Whale Investors
Amid the high fear of further crypto selloffs in the remaining weeks of September, on-chain data shows some Ethereum whales have been offloading while others held all through. For instance, the US spot Ether ETFs have now registered four consecutive weeks of cash outflows.
Interestingly, the US spot Ether ETFs have registered only one week of net cash inflows since the official approval by the US SEC.
A whale capitulated after the price crash on Sept 7 and sold ~28,554 $ETH($64.4M) to pay off all debts on #Aave, losing more than $17M!
This whale accumulated ~30.5K $ETH at ~$2,850 between Dec 18, 2023 and Jul 31, 2024.https://t.co/JM1hXzY6UA pic.twitter.com/n6JRZJZHBm
— Lookonchain (@lookonchain) September 9, 2024
According to on-chain data analysis conducted by Lookonchain, an Ether whale took profit after the price crashed on Sept 7. Notably, the whale sold approximately 28,554 ETH units, worth about $64.4 million, to pay off all debts on Aave, thus losing more than $17 million.
Meanwhile, the supply of Ether on centralized exchanges has remained low and dropped by over 500k in the past five months.
Ethereum (ETH) Price Nears Correction Bottom as Network Growth Hits Four-month Peak
