Although ETHEREUM (ETH) failed to break the $ 5,000 sign on August 24-to retreat from the highest new level (ATH) of $ 4,956-The second largest coded currency by the market may soon cross this perception, driven by a new contract activity.
Ethereum new contract activity congestion – will the price be followed?
According to A Cryptoquant Quickttake Post by PelinayPa shareholder, a sharp recovery can be seen in ETHEREUM contracts in 2024 and 2025. This year specifically, the new contracts rose significantly with the ETH price to more than $ 4,500.
The contributor to Cryptoquant highlighted that during the 2016-17 market, the activity of a new contract remained relatively steadfast. Despite subjected activity, the ETH price has entered a strong upward trend.
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On the contrary, after the 2018 race, ETH entered a direction below the prices despite the rise in new contracts. The ETH price reaction to growth in new contracts showed that the growth of use cannot compensate for the bubble explosion surrounding digital assets.
Meanwhile, during the Taurus 2020-21 market, the construction of ETHEREUM contracts has increased dramatically, in line with the financial mutation (Defi) and the amazement of non-violation symbols (NFT). At that time, the growing network activity was a major catalyst in helping the ETH gathering.
Later – during the 2022 bear market – the number of nodes and ETH price decreased. The prices of digital assets and the network activity were also negatively affected by the low interest of the developer and the user’s request during the market cycle.
The above examples confirm that in the long run, growth in the creation of increased confidence and adoption in the echerum ecosystem. These factors play positively for the ETH price.
However, the sudden increase in the creation of contracts has not always led to price gains. This was clear from the price corrections that were observed during 2018 and 2021.
What does the current outlook indicate?
In her analysis, Pelinaypa noticed that the recent increase in new ETHEREUM contracts indicates indicates renewed Network activity, mainly driven by Defi and NFT and institutional adoption. If the trend maintains, it may be provided with the next ETH Bull.
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As far as it comes to long -term effects, the analyst said that consistent growth in new contracts highlights cases of use in the real world. This gives tremendous support for the ETH price. However, noise -based contract mutations can lead to short -term price corrections.
Recent predictions indicate an additional growth space for Ethereum. For example, Tom Lee, co -founder Expected This ETH may reach $ 5500 “next weeks”.
In the same manner, the head of digital asset research at Standard Charterd, Jeffrey Kindrik, male This spirit may rise to $ 7,500 by the end of the year. At the time of the press, ETH is trading at $ 4582, a decrease of 0.2 % in the past 24 hours.
A distinctive image of Unsplash, plans from Cryptoquant and TradingView.com
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