Ethereum (ETH) Price Prediction: On-Chain Metrics Show Increasing Momentum

Ethereum's blockchain shows strong growth, with 130K new wallets added daily and a 4.24% increase in active addresses.

Ethereum blockchain activity surged in December, with an average of 130,200 new wallets created daily, indicating renewed interest in the network.

This surge marks the highest rate of new wallet creation in eight months and coincides with a period of strong growth for Ethereum, which saw its price attempt to climb back towards $4,000.

According to data from Santiment, new wallet creation has seen a surge over the past few weeks, indicating a growing attraction to Ethereum early in December.

This metric highlights the rate at which new wallets are being created on the Ethereum blockchain, indicating the entry of new users into the network.

With more users joining the ETH network, its blockchain experienced greater activity. This indicates that people are increasingly confident in the long-term prospects of blockchain.

If this spike in wallet creation can serve as a foundation for sustained growth, Ethereum price prediction suggests it could climb to higher levels.

That renewed interest in the network could be exactly what helps the world’s greatest altcoin recover. That is if it were to continue picking up steam and close in on key resistance levels.

While BTC price hit a bottom, Ethereum’s on-chain metrics also seemed to be indicating strong momentum, with a 4.24% increase in active addresses.

Here, a surge to what pointed to greater engagement with the network, marked a key sign of a healthy usage of a blockchain.

Ethereum seemed to have more active user participation compared to before and would reflect appreciation with respect to price prediction for the short-term.

As active addresses saw an uptick, new addresses increased by 2.65%, indicating the adoption of Ethereum continues.

This growing number of new users showed just how Ethereum was becoming more popular and now more and more of a key player within the world of cryptocurrency.

When more users created new wallets, the blockchain was injecting more users into its database, making the blockchain even stronger and even more present in the market.

The reduction of zero balance addresses by 4.06% indicated an increase in network appreciation by users.

While inactive wallets decline, the network as a whole continued to grow because more users used Ethereum. The positive trends showed further support bullishness for ETH as adoption continued.

At the end of the day, Ethereum’s price stability is largely dictated by its key support levels. An important level for the short-term price action of Ethereum is now the support range of $3,700 to $3,810.

This range represents a large number of wallets that combined bought 4.6 million worth of ETH at these price points, serving as a very strong support base.

Ali’s analysis states that the amount of ETH purchased in this range is at 89.24% ‘in the money’ which suggests that the majority of investors have chalked this one up as a successful trade.

The strong backing behind these price levels kept ETH on its feet and prevented further decline. If ETH’s price stays over this interval, it could function as a cushion bolstering the current support zone and even increase the price.

Since Ethereum’s price could depend upon the ability maintained of holding these levels, the importance of this support range cannot be overstated.

If the price went below $3,700, there could be more selling pressure, as sellers could nip to exit their positions.

But if ETH sustained above $3,810, it could continue to increase, suggesting a bullish price trend.