Ethereum saw a brief bounce, which pushed its price above the $2,000 mark, but this upward move seems lost its momentum and has fallen below the level. Amid this, ETH’s price bounce on Tuesday comes a notable spike in the network’s on-chain activity and the creation of new wallet addresses.
Ethereum Activity Spikes to Historic Levels
Even though the broader cryptocurrency market appears highly volatile, Ethereum investors are moving against the current trend and exhibiting renewed bullish sentiment. This renewed euphoria toward the leading altcoin is shown by a sudden wave of fresh investors entering the market each day.
Santiment, a popular market intelligence and on-chain data analytics platform, took to the X platform to share this rise in network activity amid a brief bounce. Ethereum’s price has briefly increased, and a more interesting narrative is now developing beneath the surface.
As ETH attempts to stabilize above the $2,000 level after recent volatility, bulls and bears are currently battling over whether the resistance will be breached in the long run. In the meantime, on-chain data indicates a significant increase in user involvement, which shows a historic spike in the creation of new wallets and total network activity.
Using the 30-day averages, there has been an increase in fresh addresses and network activity on a daily basis. The chart shared by Santiment shows that there are over 837,200 active ETH wallet addresses per day, representing more than 80% rise in comparison to 5 years ago.
When compared to 10 years ago, this figure marks an over 1,135% spike. The increase in new addresses may indicate new funding, a resurgence of interest, or the reactivation of previously excluded players joining the ecosystem.
In terms of new Ethereum wallet addresses, there have been over 284,800 created per day. This number represents a +64% uptick compared to 5 years ago and a more than 1,967% increase compared to 10 years ago. A steady increase in wallet creation often signals deeper network usage and growing popularity, which may trigger a larger price surge.
A Historic Pattern Unfolding On The ETH Chart
Despite the bearish market conditions, Ethereum is forming a key pattern that would flip the altcoin towards the upside. According to Coinvo Trading, a full-time crypto trader on X, the impending ETH move “is going to shock the entire world.”
After examining the altcoin’s performance on the weekly time frame, Coinvo Trading highlighted that the same Rainbow pattern that occurred in previous cycles before every major ETH rally has returned. When ETH retests the middle of the Rainbow chart, the altcoin usually blows up.
The altcoin is currently retesting the same level after hitting it once more. Should history repeat itself, ETH could be set for one of its most significant rallies. While investors are sitting on the sidelines waiting for a sign of an upswing, the expert stated that this repeating rainbow pattern is the signal they have been anticipating.
Featured image from iStock, chart from Tradingview.com
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