Industry experts are bullish on the future potential of Ethereum, with ITC Crypto founder Benjamin Cowen and MN Consultancy founder Michaël van de Poppe both identifying positive indicators for the cryptocurrency. Cowen pointed out a wedge chart pattern similar to previous cycles, indicating a potential breakout, while van de Poppe highlighted a bullish divergence and a recent higher low on the ETH chart which could lead to a break of the downward trend.
ETH prices are currently showing a 2.6% increase, trading at $2,345 at the time of writing. After hitting a low of just below $2,200 on September 7, the cryptocurrency bounced off strong support levels, suggesting resilience in the market. Despite this, Ethereum has underperformed compared to Bitcoin, with a 46% drop from its high in mid-March.
One of the reasons for Ethereum’s lackluster performance is the rising concern over diminishing network fees and an inflationary supply issuance. Coinbase’s support for EIP-4844 has been cited as a catalyst for the shift to inflationary issuance, leading to a decline in fees. Additionally, the company’s layer-2 network, Base, has witnessed a surge in users, particularly meme coin minters, leading to an increase in network revenue.
Despite the challenges, Ethereum has seen a surge in network growth, as reported by on-chain analytics platform Santiment. The cryptocurrency hit a four-month high in terms of network growth, with over 126,000 new wallets created in a single day. This surge in network activity is indicative of rising network utility, marking the highest single day for new Ethereum wallets since May.
Analysts are speculating over a potential recovery for Ethereum, with prices increasing by 7% since the weekend. Santiment analysts have noted a correlation between network growth and price action, suggesting that major rises in network activity could be indicative of a price reversal in the mid-term.
While Ethereum has faced challenges in recent months, there are positive indicators and signs of potential recovery on the horizon. With industry experts and analysts highlighting bullish trends and positive network growth, there is optimism for Ethereum’s future performance in the cryptocurrency market.