Ethereum Hits 4-Month High in Network Growth with 126,210 New Wallets Created on Typically Quiet Sunday

Despite a surge in network activity, the ETH price stays under $2,300 and takes a stand at a declining support trendline. Will Ethereum manage a bounce back or crash to $2,000?

Trapped in a bear channel, the Ethereum price is under extreme selling pressure, which puts massive pressure on the support trendline. Falling under $2,300, the minor recovery over the weekend with the network growth retests the broken $2,350 zone. 

With a higher price rejection and rising sell signals, Ethereum struggles to reclaim the $2,300 level and warns of a bearish continuation. Will this bearish continuation lead to the support trendline crackdown? Let’s find out. 

Rising Network Activity in Ethereum

In contrast to the ETH price fall, the network activity over the Ethereum blockchain has increased significantly. 

Over the last four months, the Ethereum network has grown fastest on Sunday. Although Sunday is traditionally the least active day of the week, 126,210 new ETH wallets were created on September 8.

This massive one-day spike over the weekend suggests increased network utility and signals a potential price rebound.

Amid the growing network, Ethereum whales are making a comeback. Over the last 48 hours, a whale has accumulated 5,000 ETH tokens worth $11.46 million at the recent bottom price. 

Historically, this whale has capitalized on price dips, purchasing 5,200 ETH at an average price of $1,322 in November 2022. This strategy paid off, as the whale later sold ETH at an average price of $2,093 in January, December 2023, and January 2024, earning over $4 million.

Ethereum Price at Declining Channel’s Support

On the daily chart, Ethereum is currently trading at $2,297, with an intraday peak of $2,320 facing rejection. Following a bearish close last week with a 5.29% decline, Ethereum experienced a lower price rejection at $2,150.

Despite holding this critical support level, Ethereum has seen a 16.98% drop over the past 14 days.

As the bearish continuation gains momentum, the support trend line of a more significant bearish channel is under pressure, warning of a breakdown rally. However, the bullish divergence in the RSI line teases a potential bounce back. 

Meanwhile, Ethereum’s broader market sentiment is turning bearish, undermining the momentum indicator. Further, the bearish crossover in the 100-day and 200-day EMA siren a selling signal. 

Amid the sell-off chances, Ethereum’s support levels are at the $2,150 mark near the trendline and the $1,930 horizontal levels.

Rising Ethereum Supply Puts Crucial Supports at Risk

Recently, a multi-signature wallet associated with Ethereum co-founder Vitalik Buterin has drawn attention amid its ongoing token dump. In August, this wallet received 3,800 ETH, valued at nearly $10 million, from Buterin. Since then, it has sold 760 ETH for $1.835 million USDC at an average price of $2,414.

Likewise, on Friday, a wallet linked to the Ethereum Foundation moved to unload 1,000 ETH tokens worth over $2.38 million. Notably, this wallet has a long history of dumping ETH at higher prices.

Essentially, despite some buyback moves from whales, these selling pressures continue to introduce bearish sentiment within the Ethereum community.

Ultimately, the rising supply is pressuring ETH prices downward. With the bearish trend persisting and market volatility high, maintaining key support levels will be crucial for determining Ethereum’s next move. Any significant breakdowns could lead to severe declines.