Ethereum (ETH) has had a turbulent week, with the price dipping to tag the critical $3,000 support level before recovering to current levels around $3,200. This sharp drop sparked fear among investors, as doubts about Ethereum’s performance for this cycle intensified. Many began questioning whether ETH could regain its momentum amid the broader market’s volatility.

However, key on-chain metrics suggest that not all investors share this skepticism. Data reveals that major players are still accumulating ETH despite recent price action. In the past 24 hours alone, 13 new mega whales—wallets holding over 10,000 ETH each—have joined the network. This signals strong confidence among high-net-worth investors and institutional players, who appear to see the current price levels as an opportunity.

This significant accumulation activity suggests that big players are positioning themselves for a potential breakout. While smaller retail investors may be hesitant, the moves of these whales could indicate optimism for Ethereum’s long-term prospects. As ETH stabilizes around the $3,200 level, the market will be closely watching whether this accumulation trend leads to renewed bullish momentum and a stronger recovery in the weeks ahead. The coming days could be pivotal for Ethereum’s trajectory in this market cycle.

Ethereum Enters A Recovery Phase

Ethereum has faced significant selling pressure since late December, shedding over 25% in value during this period. The prolonged downturn has tested investor confidence, yet recent price action suggests that the bearish phase may be nearing its conclusion. Analysts are now optimistic about a reversal and potential recovery, with Ethereum showing signs of regaining its footing.

Top crypto analyst Ali Martinez has highlighted compelling data supporting this bullish outlook. According to his analysis shared on X, 13 mega whales—wallets holding over 10,000 ETH each—have joined the Ethereum network in the last 24 hours. 

This surge in large-scale accumulation suggests that big players are taking advantage of current price levels, positioning themselves for an anticipated recovery. Significant whale activity often serves as a strong indicator of confidence among institutional and high-net-worth investors, who typically operate with a long-term perspective.

At its current levels, Ethereum appears to be building a strong base of support. This accumulation by mega whales aligns with the broader market sentiment that ETH is poised for a bullish phase once the selling pressure subsides. If ETH can hold its ground and reclaim key resistance levels, the next upward move could mark the beginning of a strong recovery and sustained bullish momentum in the months ahead.

ETH Testing Crucial Liquidity  

Ethereum is trading at $3,190 after finding strong support at the $3,000 mark, which aligns with the 200-day moving average. This key level has acted as a critical long-term indicator of strength, and ETH’s ability to hold above it suggests the potential for a trend reversal. After weeks of downward pressure, the current price action indicates that ETH might finally be ready to shift from its bearish trajectory.

For a complete confirmation of a bullish reversal, Ethereum must break above and hold the $3,500 level, a significant resistance zone that has capped its upward movement in recent weeks. Reclaiming this level would likely restore investor confidence and signal the start of a new uptrend. However, market conditions remain volatile, driven by speculation and broader macroeconomic uncertainties, which may delay ETH’s breakout.

Despite the challenges, Ethereum’s recovery above the 200-day moving average is a positive sign for the long-term outlook. Investors are cautiously optimistic as ETH stabilizes at current levels. Patience may be required, but the recent price action suggests ETH is setting the stage for a potential rally once it overcomes key resistance and the broader market finds direction.

Featured image from Dall-E, chart from TradingView

On-chain data shows a large amount of new addresses have popped up on the Ethereum network recently, a sign that ETH adoption is occurring.

Ethereum Network Growth Registered A Sharp Spike Recently

In a new post on X, the on-chain analytics firm Santiment has discussed about the latest trend in the Network Growth for Ethereum. The “Network Growth” here refers to an indicator that keeps track of the total number of addresses that are coming online on the ETH blockchain for the first time.

An address is said to be ‘online’ or active when it participates in some kind of transaction activity on the network, whether as a sender or receiver. Thus, the Network Growth measures the number of addresses making their very first transfer.

When the value of this indicator is high, it means the network is witnessing the creation of a large number of addresses. This kind of trend can arise when new users join the chain or old ones who had sold earlier return.

A spike in the Network Growth can also naturally occur when existing users create multiple wallets for a purpose like privacy. In general, all of these factors are at play to some degree whenever the indicator observes an increase, so some adoption of the cryptocurrency could be assumed to be taking place.

Now, here is the chart shared by the analytics firm that shows the trend in the Ethereum Network Growth over the past six months:

The value of the metric seems to have been quite high in recent days | Source: Santiment on X

As displayed in the above graph, the Ethereum Network Growth saw a huge spike during the weekend, implying a large number of new addresses were generated on the ETH blockchain.

In total, the users created 206,290 addresses during this spike, which is the largest value for the indicator since October 2022, more than two years ago.

As the analytics firm notes,

The 27-month high in daily wallet creation comes during a time when ETH crowd sentiment has veered particularly negative as other altcoins have outperformed it. Regardless, due to DeFi and staking options for crypto’s #2 market cap asset, Ethereum is still the entire sector’s leader in total non-empty addresses.

Historically, adoption is something that has been constructive for cryptocurrencies, as a wider userbase can provide for a stronger foundation on which future price moves can thrive.

The potential bullish effects of adoption, however, usually only become apparent in the long term. Thus, these new addresses are unlikely to have any noticeable influence on the price of Ethereum in the near future.

ETH Price

Ethereum, like the rest of the cryptocurrency sector, has crashed during the past day. After a drawdown of around 7%, ETH’s price is now trading under $3,100.

Looks like the price of the coin has plummeted over the past day | Source: ETHUSDT on TradingView

Featured image from Dall-E, Santiment.net, chart from TradingView.com