- The daily number of new addresses trading ETH has risen to the highest level since November 2022.
- Even though the price of the coin moved sideways, investors continued to buy.
Ethereum [ETH] has witnessed a surge in network activity over the past three weeks, with altcoin demand surging to a 13-month high on January 11, data from Santiment showed.
📊 #Altcoins creating separation from each other as market polarity continues after last week’s big news:
Net. Growth climbers (3 weeks):
📈 $ETH +6%
📈 $ENS +124%
📈 $T +195%Net. Growth decliners (3 weeks):
📉 $ENJ -32%
📉 $BAT -42%
📉 $APE -23%https://t.co/g66cGSuBG8 pic.twitter.com/VXVWssRR48— Santiment (@santimentfeed) January 18, 2024
According to the data provider, 636,480 new addresses were created on the network that day to trade the leading altcoin. The last time the number of new ETH wallet addresses created in a single day reached such a high level was in November 2022.
The surge in demand for the coin on January 12 coincided with the approval of the first-ever Bitcoin Spot ETF, which was granted by the US Securities and Exchange Commission on January 10.
According to data from CoinMarketCapOn January 12, the surge in demand caused the price of ETH to rise above $2700 to exchange hands at a high observed in April 2022.
The bullish sentiment persists, despite…
A look at ETH’s price movements on a seven-day chart revealed that after this price remained high, the coin’s price has been within a narrow price range ever since. This is attributed to the significant volatility associated with the recorded price increase.
At the time of writing, the gap between the upper and lower bands was widening, confirming that the coin remained sensitive to price fluctuations. The Bollinger Band also showed an upward trend, showing that volatility in the ETH market remained high.
However, despite limited price movements and high market volatility, accumulation continued to outpace coin sell-offs. At the time of writing, ETH’s key momentum indicators were at an overbought high.
For example, the Relative Strength Index (RSI) was 70.68, while the Money Flow Index (MFI) was 87.41.
Similarly, ETH’s Chaikin Money Flow (CMF) returned a value above zero at 0.15. When an asset’s CMF is above zero, it indicates there is more buying pressure.
At 0.15, ETH’s CMF showed accumulation continuing despite the coin’s sideways moves.
Source: TradingView
Read Ethereum’s [ETH] Price forecast 2024-25
In the coin’s derivatives market, the current bullish sentiment presented itself as rising futures Open Interest. Since ETF approval, ETH Open Interest has grown by 17%, according to data from Mint glass.
At the time of writing, the alt’s open interest stood at $8.81 billion, the highest since October 2022.