Ethereum Network Thrives Despite ETH Price Stagnation

• Ethereum network growth has hit a 4-year high on Sunday, confirmed Santiment.
• There is an increased chance of the digital asset breaking from the $2.2K-$2.3K level.
• ETH ETFs fail to bring the necessary capital for a bullish outbreak in Ether’s price.

Ethereum’s network is flourishing, reaching a four-year high in growth even as ETH, its native token, struggles around the $2,200 mark. This surge in network activity, particularly during a period of price decline, hints at a potential price reversal according to on-chain analytics firm Santiment.

Santiment’s data reveals a remarkable increase in new Ethereum wallets, reaching the four-month high of 126,210. This suggests growing network utility and sets the stage for possible price rebounds from the $2,200-$2,300 level. The timing of this surge, occurring on a typically quiet Sunday, further amplifies its significance.

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While the network thrives, ETH’s price is at $2,288.45 , facing resistance at the $2,800-$3,000 zone. Santiment added :

Generally, whatever the mid-term trend is for prices, major rises in network activity are more indicative of a price reversal. This rise in network growth is more rare when prices are dropping.

ETF Outflows and Price Analysis

Data from SoSoValue reveals over $5.98 million has flowed out of spot Ethereum exchange-traded funds (ETFs) recently approved in the U.S., bringing the net outflows to $568.30 million. These investment products have underperformed compared to spot Bitcoin ETFs approved in January of last year.

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As per CoinMarketCap, ETH market capitalization 0.13% in the past 24 hours, currently standing at $275 billion. The accumulation of the cryptocurrency is down from the high levels of May but above the levels of April.

The Relative Strength Index (RSI) currently sits at 36.26, confirming that bears are generally in control of ETH’s price action. However, the gradient of the line suggests a slight uptick in buying volume.