Key Points
- The Ethereum network has registered significant growth despite a decline in ETH price.
- Potential approval of spot Ethereum ETFs in the U.S. is under discussion.
Despite the broader market sell-off, the Ethereum (ETH) price has been under significant selling pressure, pushing it below $3,000.
In the past week, the ETH price has lost over 6% and is currently trading at $2,942, with a market cap of $353 billion.
Ethereum Network Expansion
Although April was a tough month for ETH investors, the Ethereum network saw strong growth in new addresses created.
On April 29, Ethereum saw its most significant network expansion in over a year, with approximately 139,560 new ETH addresses created.
Data from on-chain analytics firm Santiment reveals that on April 28 and 29, the network saw the creation of 266.6K new wallets.
This was the most substantial two-day surge in network expansion since October 8th and 9th, 2022, illustrating Ethereum’s resilience despite recent price declines.
ETH Price and Network Growth
On the technical chart, the Ethereum price has been consolidating in a falling wedge pattern.
A decisive breakout above the upper trendline could trigger bullish action.
After the breakout, the Ethereum (ETH) price can rally another 25% moving all the way to $4,250.
However, the descending wedge pattern continues to hold as the ETH price continues to hold above $2,900 in the 12-hour timeframe.
On the other hand, bearish momentum might prevail, potentially pushing the Ethereum price below the $2,900 support level.
This could nullify the bullish reversal pattern and attract additional selling pressure.
Potential Approval of Ethereum ETFs
There has been much discussion about the approval of spot Ethereum ETFs in the U.S., with the deadline for approval set for May 23.
Many market analysts believe that the SEC won’t approve it this time but eventually by the end of 2024.
The SEC has recently argued that, similar to XRP, ETH also qualifies for a ‘security’ status.
This could be a significant obstacle in the approval of the spot Ethereum ETF.
However, ConsenSys has recently sued the SEC for labeling ETH as a security.
