Ethereum Sees 8-Month High in Wallet Growth as Price Nears $4,000

• Ethereum’s network growth hit an 8-month high, with an average of 130,200 new wallets created daily in December, signaling renewed user interest.
• Ethereum’s price nears the critical $4,000 resistance level, rebounding from lows earlier in the week, as market optimism strengthens.
• Investor demand and network activity drive bullish predictions, with analysts forecasting Ethereum may surpass $5,000 due to strong metrics.

According to data from on-chain analytics platform Santiment, Ethereum’s network growth has reached its highest level since April 2024. Throughout December, an average of 130,200 new wallets were created daily, signifying a renewed interest in the blockchain. This marks a substantial uptick in network activity and highlights a growing user base.

Santiment shared these insights in a tweet, noting that Ethereum is experiencing “an 8-month high level of new wallets created,” with new addresses consistently emerging each day in December. This surge signals increasing engagement with Ethereum’s network, a trend not observed for months.

📈 Ethereum is seeing an 8-month high level of new wallets created. With an average of 130.2K addresses newly popping up on the network every day so far in December, ETH is seeing renewed interest it hasn’t seen since April. pic.twitter.com/sLPy8yeWtl

— Santiment (@santimentfeed) December 13, 2024

Ethereum Price approaches key resistance at $4,000

Its price has been surging lately with the current wave putting it within a whisker of the $4,000 mark. The market peaked at $3,945 an intraday high after it had touched the lowest level of $3,501 this week. However, ETH has not yet managed to leave behind the $4,000 mark, as the rise has a systematic pullback.

Market data shows Ethereum down 1.14% over the last 24 hours, trading at $3,867 at the time of writing. Nevertheless, market optimism remains high, with analysts suggesting further upward potential due to strong network metrics and demand dynamics.

CryptoQuant analysts expect Ethereum to cross $5,000 for the first time due to demand from investors; on-chain figures . According to a CryptoQuant tweet made recently, the realized price upper band is slightly over $5,200, which is reminiscent of the bull trend in 2021 with the prospect for further increase.

Investor demand is evidenced by the highest spot Ethereum ETF inflow in the week at $854 million this year. Furthermore, decentralized transactions in the Ethereum network have been active in the indicated year, with an average of 6.5 -7.5 million transactions per day, an improvement from 5 million from the previous year in 2023.

Ethereum total supply has risen to 120.44 million, the highest point since the mining of Ethereum was recorded in the 115th week of the year 2023. So taken together with completely consistent results such factors make more chances for price appreciation in the short term supported by undisturbed expansion of the network and increasing demand from the investors.

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