Important Ethereum Metric Hits a 4-Month High: ETH Price Rally Soon?

TL;DR

Over 126,200 new Ethereum wallets were created on September 8, signaling rising network utility and potential price growth for ETH.While some analysts predict a bullish move for the asset, increased exchange inflows suggest possible selling pressure and caution for bulls.

Ethereum’s Advancement

Crypto analytics platform Santiment revealed that over 126,200 Ethereum wallets were created on September 8. The last time the figure jumped so high was on May 5.

The entity claimed that the resurgence is a signal of rising network utility and a precursor for “price bounces from the $2,000 – $2,300 level.” It is worth noting that the following day, ETH’s valuation crossed $2.3K and is currently trading at around $2,320 (per CoinGecko’s data).

ETH Price, Source: CoinGecko

Several analysts support Santiment’s thesis that Ethereum’s price could be on the verge of a revival. Michael van de Poppe (an X user with over 700,000 followers) thinks a “bullish divergence is still valid, and a higher low has been made.” The crypto enthusiast assumed that the downtrend observed in the past months might be broken to the upside, describing the potential move as “a significant push for the entire market.”

Other analysts who recently predicted good days ahead for ETH bulls include Yoddha and The Cryptomist. Last week, the former claimed that the second-largest cryptocurrency “is cooking something big right now.”

$ETH is cooking something big right now

This pullback to the demand area is very crucial. Bounce incoming? pic.twitter.com/IfeaJt0RRC

— Yoddha (@CryptoYoddha) September 4, 2024

For their part, The Cryptomist suggested that ETH could tumble to around $2,330 before heading north to as high as $3,000. Recall that the price plunged way below that mark over the weekend.

Increased Selling Pressure

Contrary to the optimism shared by the aforementioned analysts, one important factor hints that ETH could be headed for a further pullback soon. This is the Ethereum netflow exchange, which, according to CryptoQuant, was predominantly positive in the past week.

ETH Exchange Netflow, Source: CryptoQuant

Such a move suggests a shift from self-custody methods toward centralized exchanges, which could indicate increased selling pressure and more pain for the bulls.