Ethereum New Addresses Surge To Nearly 257K In A Day, Matching 2017 And 2021 Bull Markets

Ethereum has entered a correction phase after weeks of aggressive buying pressure that pushed the price to a local high of $3,940. Following this rally, ETH has retraced over 12%, breaking below the $3,450 level as the market digests recent gains. The sharp pullback has sparked concerns of a deeper correction; however, on-chain data and market fundamentals paint a more optimistic picture.Despite the price drop, Ethereum’s underlying strength remains intact. Whale addresses continue to accumulate during this dip, signaling high-conviction buying from large investors who are positioning for long-term gains. Additionally, Ethereum network activity is rising, with metrics such as new addresses, transaction volume, and smart contract interactions climbing back to levels last seen during previous bull cycles.The broader narrative around Ethereum also remains bullish, driven by its dominance in decentralized finance (DeFi), real-world asset (RWA) tokenization, and stablecoin infrastructure. As institutional adoption grows and regulatory clarity improves, ETH’s fundamental value proposition continues to strengthen.Ethereum Network Growth SurgesTop analyst Ted Pillows has shared key data from Glassnode revealing a massive surge in Ethereum network activity. According to Pillows, the number of new ETH addresses created in a single day recently hit 256,817—a figure that matches the network growth rates observed during Ethereum’s historic bull runs in 2017 and 2021. This milestone comes despite the market experiencing a recent price correction, signaling that investor interest and on-chain adoption remain robust.Such a sharp increase in new addresses is often viewed as a leading indicator of future price expansion. It reflects a growing influx of new participants entering the ecosystem, whether for DeFi, NFTs, or tokenized assets. Analysts see this rise in user activity as a foundational driver that could fuel Ethereum’s next rally, especially as ETH continues to trade just below multi-year highs.Adding to this momentum is the wave of legal clarity in the United States, which has removed significant regulatory uncertainty around Ethereum’s status. Institutional adoption is also accelerating, with large financial firms increasingly integrating Ethereum-based solutions into their offerings, from stablecoin infrastructure to tokenized securities platforms.The combination of strong on-chain fundamentals, a surge in new address creation, and institutional validation suggests that Ethereum’s current market position is not a fleeting trend. Despite short-term price fluctuations, the network’s explosive growth hints at the potential for further continuation above previous cycle highs.Ethereum Tests Key Support After Sharp BreakdownEthereum has experienced a sharp breakdown from its recent consolidation range, with the price falling to $3,454.41 after failing to hold above the $3,600 level. The chart shows a clean rejection from the $3,860 resistance zone, leading to increased selling pressure that accelerated as ETH broke below the 50 and 100-period moving averages on the 4-hour timeframe. The next critical support now lies around the $3,450 level, which has acted as a previous accumulation zone during the last bullish leg.Volume has surged on this move down, suggesting that a significant portion of this drop is driven by short-term panic selling and liquidation cascades. However, the 200-period SMA is still positioned well below current levels, at $3,192.22, indicating that the broader uptrend remains intact unless that area is breached.If bulls manage to defend this $3,450 level and reclaim $3,600 quickly, Ethereum could stabilize and attempt a new rally towards the $3,860 resistance. Failure to do so might open the door for a deeper correction, with the $2,850 level being the next major downside target.Featured image from Dall-E, chart from TradingViewWeiter zum vollständigen Artikel bei NewsBTC Weiter zum vollständigen Artikel bei NewsBTC