The cryptocurrency market is witnessing a notable surge in Ethereum (ETH) activity, with the creation of new wallets and increased holdings by top investors signaling a robust demand for the second-largest blockchain platform by market capitalization.
On Tuesday, data from Santiment revealed a significant increase in Ethereum network participation, marked by the registration of 94,700 new wallets as the cryptocurrency price breached the $2,000 mark. This level of activity has not been observed since the price highs of May 2022.
Continuing this positive trend into today, analysis from Santiment shows that the top 200 Ethereum wallets have expanded their holdings considerably, amassing over $124 billion worth of ETH. This accumulation comes despite recent market uncertainties and a nearly 20% decrease in ETH held on exchanges over the past six months, reaching its lowest point within this period. The reduction in exchange-held Ethereum coupled with an uptick in active addresses suggests a strong investor conviction in the asset's value.
The current enthusiasm around Ethereum also aligns with IntoTheBlock's charts, which corroborate the increase in both active addresses and new wallet creations during this upward trend. As Ethereum's price aims for the $2,200 level—a price point last seen in May 2022—market participants are keenly watching for potential Bitcoin ETF approvals that could further influence sentiment.
Despite facing challenges such as Binance CEO Changpeng Zhao's actions that have previously shaken market confidence, heavyweight Ethereum investors have demonstrated their resilience. They have continued to purchase and hold onto their ETH assets since November 21 last year, even as the cryptocurrency experienced a descent to $900 following FTX's downfall.
While Ethereum has shown some depreciation recently, it has fared better than Bitcoin, which has seen a more pronounced drop to $36,480. Analyst FieryTrading suggests that Ethereum could be poised for an imminent rise towards $2,350 based on current 'bull-flag' formations observed in trading patterns.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.