- Ethereum is seeing a surge in new wallet creation, with 130,200 new addresses being added daily in December, marking an 8-month high.
- On-chain metrics show strong growth, with active addresses up 4.24% and new addresses rising by 2.65%, signaling building momentum.
- CryptoQuant forecasts Ether could break above $5,000, with supply and demand dynamics strengthening despite short-term price weakness.
Ethereum (ETH) is witnessing a surge in new wallet activity, reaching an 8-month high with an average of 130,200 new addresses being created every day in December. This significant uptick signals a level of renewed interest that Ether has not seen since April of this year.
Per Santiment, this growth in the number of wallet creation hints at increasing optimism with ETH. Increased daily new wallets indicate that the action is heating up within the network-meaning that more users are trying to set up for any eventual upside.
Ethereum’s On-Chain Metrics Signal Strength
On-chain data continues to support this trend; major Ether metrics show the uptick. According to analyst Ali, Ethereum’s active address tally is up by 4.24% whereas new addresses are up 2.65% accordingly.
More specifically, the number of zero-balance addresses contracted by 4.06%, another indication that Ethereum’s ecosystem is strengthening. According to Ali, momentum for ETH is building while support is currently at $3,700 to $3,810, where 3 million wallets bought 4.6 million ETH.
Analysis by CryptoQuant indicates Ether has even more upside, which will see ETH break above $5,000 as supply and demand dynamics continue improving.
This range points out that the present ETH realized price upper band stands at $5.2K, a level last seen during the 2021 bull run; this is an indication of how ripe the market fundamentals are for growth in the asset, with a considerable upward price movement likely for the asset.
Ethereum Faces Short-Term Weakness, Long-Term Potential
However, Ethereum has not been without its blemishes despite these positive pointers. According to CryptoQuant’s report, Ether’s Taker Volume is at an all-time low, currently at -400 million, indicating aggressive selling behavior.
This could have implications for short-term weakness in prices, similar to the pattern that preceded May 2021’s peak in the price of Ethereum. While some caution signs exist, others think the current price weakness may be temporary and there could still be more upward growth. In fact, this is pretty bright, on the back of strong chain metrics, wallet creation still on the rise, and overall promising price signals.
While the road to new all-time highs might not come without its hiccups, the signs are certainly there that Ethereum’s long-term growth potential is intact. Whether it’s the renewed interest from both retail and institutional investors, Ethereum might just be laying the foundation for another significant market rally in the coming months.
Related | Crypto Forecast 2025: Bitcoin, Ethereum, and Altcoins Poised for New Records