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 robust demand for the second-largest blockchain platform by market capitalization.
On Tuesday, data from Santiment revealed a significant increase in participation in the Ethereum network, marked by the registration of 94,700 new wallets as the cryptocurrency price broke through the $2,000 mark. This level of activity has not been seen since the price highs of May 2022.
Continuing this positive trend today, Santiment’s analysis shows that the top 200 Ethereum wallets have significantly increased their holdings, accumulating over $124 billion worth of ETH. This accumulation comes despite recent market uncertainties and a nearly 20% decline in exchange-held ETH over the past six months, reaching its lowest point in that period. The decline in exchange-held Ethereum, coupled with an increase in active addresses, suggests a strong investor conviction in the value of the asset.
The current enthusiasm for Ethereum is also consistent with IntoTheBlock’s charts, which confirm the increase in both active addresses and new wallet creations during this upward trend. With the price of Ethereum targeting the $2,200 level – a price last seen in May 2022 – market participants are watching closely for potential bitcoin ETF approvals that could further influence sentiment.
Despite challenges such as the actions of Binance CEO Changpeng Zhao, which have previously shaken market confidence, heavyweight Ethereum investors have shown their resilience. They have continued to buy and hold their ETH assets since November 21 last year, even as the cryptocurrency plummeted to $900 following FTX’s fall.
While Ethereum has seen some depreciation recently, it has fared better than bitcoin, which has seen a more pronounced drop to $36,480. Analysts at FieryTrading suggest that Ethereum could be poised for an imminent rise towards $2,350 based on current bull flag formations observed in trading patterns.
