Recently, ITC Crypto founder and CEO Benjamin Cowen pointed out a wedge chart pattern in the current market cycle for Ethereum that resembles patterns from previous cycles. This pattern, although larger in scale, is showing similarities to the structure observed after an interest rate cut in 2019. Additionally, MN Consultancy founder Michaël van de Poppe identified a bullish divergence on the ETH chart, indicating the possibility of breaking the downward trend. These predictions are based on technical analysis and market dynamics, suggesting a potential shift in the market sentiment.
Price Movement and Performance
Amidst these predictions, Ethereum prices have seen a 2.6% increase, currently trading at $2,345. This comes after a recent drop to just below $2,200 on Sept. 7, which rebounded from strong support levels. However, Ethereum has underperformed compared to other cryptocurrencies, with a 46% decline from its 2024 high in mid-March. The reasons behind this underperformance include concerns over network fees and an inflationary supply issuance, driven in part by support for EIP-4844 and increased activity on the layer-2 network, Base.
Network Growth and Utility
On Sept. 9, on-chain analytics platform Santiment reported a significant increase in Ethereum network growth. With over 126,000 new wallets created in a single day, this surge in activity points towards rising network utility. This spike in new wallet creations is the highest since May 5, indicating a growing interest in Ethereum. As a result, ETH prices have also seen a 7% increase since the weekend, leading analysts to speculate on a potential recovery in the market. Santiment analysts have noted a correlation between network growth and price action, suggesting a possible price reversal in the near future.
The current state of Ethereum reflects a mix of technical analysis, market predictions, and network growth indicators. While chart patterns and bullish divergences hint at a potential market shift, concerns over network fees and supply issuance continue to impact Ethereum’s performance. The recent surge in network activity and new wallet creations signal a growing interest in Ethereum, potentially setting the stage for a price reversal in the coming days. As the market continues to evolve, monitoring these trends will be crucial for investors and traders looking to navigate the volatile cryptocurrency space.
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