The ethereum network is seeing the highest level of new addresses created since January 2018, at the peak of eth prices.
Some 195,000 new addresses were created on June the 1st according to etherscan, a level surpassed only on January 24th last year when 225,000 new addresses were created.
The number of ethereum transactions is also at their highest in more than a year with over 950,000 transactions made on Saturday.
There’s usually a very high level of correlation between ethereum’s price and network activity with the above showing what looks like a coup and handle of sorts.
The price chart however looks quite a bit different from that of transactions:
There’s a sort of cup and handle from September last year to now, but if price was following transactions, there would be a cup and handle from May last year to now at circa $900.
Ironically perhaps it is actually bitcoin that is following better the level of ethereum transactions:
We can see on these daily candles a sort of biggish cup and handle that goes back to almost May 2018.
That’s in part perhaps because bitcoin did not fall like eth from July 2018 to September. Instead it sidewayed until the big drop in November.
So what we may have is a bit of an irrational subdued sentiment in eth that may have detached from fundamentals a bit like bitcoin did in 2015.
That’s because as the network activity measure by Santiment shows in the featured image, demand for the ethereum network has jumped recently. Price however hasn’t quite seen a similar jump, but whether that will change, remains to be seen.