Ethereum (ETH) has risen above $3,200, which has caused a lot of action on its network. The value of the coin grew very quickly. On May 4, 2024, it had the highest single-day gain in almost 19 months.
A significant 196,000 new Ethereum addresses were made, which is a record that hasn’t been broken since October 8, 2022.Ethereum’s network health is still strong, even though the price is still hovering below the $3,200 mark.
Ethereum’s Growing Network Strength
The creation of such a significant number of new addresses could mean that there are a lot of new participants or that current stakeholders are becoming interested again. With this surge, a strong foundation is set for price growth in the future.
However, technical research shows that Ethereum is more complicated than it seems. The coin is almost about to fall below the important 200-day Exponential Moving Average (EMA). If this level is broken, it could lead to short-term bearish mood.
But people who watch the market find comfort in the fact that trade volume is going down along with this downturn. Usually, a drop in volume during a decline means that there is less pressure to sell, which could mean that the trend will reverse to the upside if conditions are right.
When strong network growth and technical signs come together, it’s not easy for Ethereum investors. Prices are under pressure to go down, but the rise in new addresses and changes in volume suggest that there is hidden bullish potential.
Analysts stress that sustained moves above the 200-day EMA or signs of rising trading volume could confirm a change from current levels and could start a new part of the price uptrend.
