Important Ethereum Metric Hits 4-Month High: ETH Price Rally Soon?

TL;DR

More than 126,200 new Ethereum wallets were created on September 8, indicating the increased utility of the network and potential price growth for ETH. While some analysts are predicting a bullish move for the asset, increased currency flows suggest potential selling pressure and caution for the bulls.

Ethereum Breakthrough

Crypto analytics platform Santiment revealed that more than 126,200 Ethereum wallets were created on September 8. The last time the number jumped this high was on May 5.

The entity stated that the resurgence is a sign of increased utility in the network and a precursor to “price rebound from the $2,000-$2,300 level.” It is worth noting that the next day, ETH’s valuation exceeded $2.3 thousand and is currently trading around $2,320 (according to CoinGecko data).

ETH price, Source: CoinGecko

Several analysts support Santiment’s thesis that Ethereum’s price could be on the verge of a revival. Michael van de Poppe (an X user with over 700,000 followers) believes a “bullish divergence is still valid and a higher low has been made.” The crypto enthusiast speculated that the downtrend seen in recent months could break to the upside, describing the potential move as “a significant push for the entire market.”

Other analysts who recently predicted good days ahead for ETH bulls include Yoddha and The Cryptomist. Last week, the former claimed that the second largest cryptocurrency is “cooking up something big right now.”

$ETH he’s cooking something big right now

This pullback to the demand area is very crucial. Inbound bounce? pic.twitter.com/IfeaJt0RRC

— Yoddha (@CryptoYoddha) September 4, 2024

For his part, The Cryptomist suggested that ETH could fall to around $2,330 before heading north to $3,000. Remember, the price fell well below this mark over the weekend.

Increased selling pressure

Contrary to the optimism shared by the analysts mentioned above, one important factor suggests that ETH could be headed for another pullback soon. This is Ethereum’s net flow exchange, which according to CryptoQuant was predominantly positive last week.

ETH Exchange Netflow, Source: CryptoQuant

This move suggests a shift away from self-custody methods toward centralized exchanges, which could signal greater selling pressure and more pain for taps.

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