Ethereum is experiencing a significant network expansion this year, as new wallet creation has seen a sharp increase in December. Despite the swift arrival of new participants, ETH’s price continues to hover in a sideways range, highlighting a disconnect between on-chain fundamentals and market sentiment. According to data, Ethereum appears to be approaching a pivotal moment where the foundational strength of the network could start to push price action higher, despite the ongoing caution among long-term holders. Ethereum network growth experiences a significant surge, reaching multi-month highs. Santiment’s data reveals a significant surge in Ethereum’s daily network growth, as indicated by the influx of newly created wallets, throughout December.
Increasing engagement from fresh market entrants Heightened prospects for ETH demand in the medium term The swift onboarding typically signals an impending price surge, particularly when it continues for an extended period. Ethereum’s price remains stagnant, even in the face of robust fundamentals. While the network experiences remarkable growth, the ETH price chart presents a starkly contrasting narrative. Ethereum has remained within a range of $2,800 to $3,300 for almost six weeks, struggling to break through resistance levels or revisit lower price points.
The market is indicating: A gradual, persistent formation of lower highs and higher lows This consolidation suggests a state of indecision rather than a sign of weakness, particularly when it is coupled with increasing network activity. The TradingView Holders Sentiment indicator introduces a crucial dimension to the analysis. Throughout November, the sentiment was overwhelmingly negative. Long-term holders adopted a defensive posture, keeping a risk-off approach as ETH continued its downward trajectory. However, in mid-December, the sentiment transitioned into neutral-positive territory, indicating a subtle yet significant shift.
As sentiment strengthens and wallet creation surges, it frequently indicates the potential for a resurgence in bullish momentum. Ethereum has successfully defended the $2,860–$2,900 zone on several occasions. With the improving sentiment and a stable consolidation range, it appears that ETH could be establishing a higher-low structure, which is frequently seen as a precursor to a trend reversal. If the current pace of new wallet creation persists, we could see demand surpassing supply — setting the stage for ETH to potentially break free from its multi-week range. Ethereum’s network expansion is outpacing price movements, indicating a potential accumulation of hidden demand that may lead to a significant breakout in the future. However, until holder sentiment strengthens further and buying pressure returns, ETH may continue to trade within a range despite the improving fundamentals.