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Ethereum Network Witnesses Biggest Activity Surge of the Year

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VOC, Voice of Crypto, ETH

The price action of Ethereum was all the hype before the merge. The cryptocurrency surged in early September, reaching a high of about $1,700. Many traders and analysts released price predictions, estimating that the price of Ethereum was going to surge to the $2000 level and beyond after the merge.

However, the price action on Ethereum after the merge event was anticlimactic as the bears took over, pushing the price of the cryptocurrency well below the $1,400 mark.

The number of new addresses created on the network also dropped, along with several other metrics. And in late September, the US Federal Reserve dealt the final blow after increasing an increase in the dollar interest rates. This finally drove the price of Ethereum down to the $1250 zone, which the crypto has been struggling to move beyond.

Recent Developments on Ethereum

There are, however, some rays of sunshine concerning Ethereum’s future in terms of price.

According to a Twitter post by crypto analysis platform Santiment, Ethereum’s network activity has had one interesting development.

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The crypto analysis platform, in the tweet, mentions that in recent times, the Ethereum network has seen a spike in the number of new addresses created on it.

Over 135,780 new addresses have “popped up” on the network, accounting for an 11% greater network growth than the highest the network has witnessed since January 3.

Santiment also adds that utility rises like these commonly foreshadow or predict potential asset breakouts.

Chart showing a spike in the number of new addresses on the Ethereum network

Chart showing a spike in the number of new addresses on the Ethereum network | Source: Santiment’s Tweet

This current growth is also the highest the network has seen since December 7, 2021.

How Ethereum’s Price Has Reacted

Historically the price of Ethereum has reacted rather well to upsurges in the number of new addresses created on its network.

As Santiment suggests, a breakout may be on its way to forming as Ethereum currently trades inside a bullish wedge.

Price chart showing possible breakout and further price movement to the upside

Price chart showing possible breakout and further price movement to the upside | Source: Tradingview

After the current price consolidation, Ethereum may manage to break to the upside of the upper trendline after one or two retests and may very well reclaim the $1,700 levels it held before the merge.

 Youtuber “BitBoy” Accuses Former SEC 

In other news, a popular crypto YouTuber behind the “BitBoy Crypto”, come out with a tweet containing some severe accusations against the former SEC boss.

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Ben Armstrong, popularly known as “BitBoy” has criticized the former SEC boss William Hinman, claiming that it is “clear” the former chairperson had accepted bribes to declare ETH a commodity.

BitBoy also references comments by Cardano founder Charles Hoskinson that if XRP is indeed security as claimed by the SEC in the ongoing lawsuit against Ripple, Ethereum should also have been sued.

This coincides with how the SEC tries to conceal the famous “Hinman Documents” containing classified information that may exonerate Ripple in the ongoing court hearing.

 

 

Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR  (do your own research)

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Jim Haastrup is a freelance blockchain and metaverse writer. He helps founders, investors, startups, crypto, and blockchain enthusiasts connect with their audience and win investment through the written word.

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