During January 2025, Ethereum’s network metrics have achieved significant milestones, with a peak in new address creation not seen in 27 months despite recent price adjustments.
This increase in network activity offers valuable insights into potential market trends and adoption patterns.
Ethereum Price Movement and Technical Analysis
At the time of writing, the ETH/USD pair was valued at $3,051.36, registering a noticeable 5.57% decrease in recent trading sessions.
Although the price has dropped below the 50-day moving average, the 50-day (3,452.83) and 200-day (2,988.11) moving averages’ crossing has maintained a bullish structure.
Trade volume reached 75.74K ETH, indicating significant market involvement during the selling phase.
The Chaikin Money Flow (CMF) indicator displayed a slight bearish bias with a reading of -0.04, remaining close to neutral territory.
This technical setup suggests short-term selling pressure while upholding a bullish market structure in the long term.
Analysis of Network Growth
An examination of Glassnode data by CryptoCrypto unveiled a notable surge in new Ethereum addresses.
Within a span from the 24th to the 25th of January, addresses reached around 200,000, a level last witnessed back in October 2022.
This spike represents a remarkable increase from the average daily address creation of 100,000-120,000 noted throughout most of 2024.
The rise in new ETH addresses coincides with heightened market volatility, indicating that price movements might be attracting new participants despite recent corrections.
Historical data indicates similar trends of address growth during periods of price discovery and market uncertainty.
Growth in Addresses with Non-Zero Balances
The number of Ethereum addresses with a non-zero balance has consistently risen, reaching 136 million in January 2025.
This balance has displayed notable resilience, growing even during price downturns, signaling robust network adoption beyond speculative trading.
The steady uptick in non-zero ETH balance addresses, contrasting with the more volatile price movements, hints at an expanding base of long-term holders and engaged users within the ETH ecosystem.
This divergence between price performance and adoption metrics often foreshadows significant market shifts.
Market Outlook for ETH
The combination of increasing new addresses and a steady rise in non-zero balance holders presents an intriguing market dynamic.
While short-term weakness was visible in ETH’s price action, underlying network metrics indicated growing adoption and potential accumulation at current levels.
This disparity between price trends and network growth could signal an upcoming divergence that has historically preceded major market movements.
The continuous surge in network participation, particularly amidst price corrections, frequently denotes a maturing market and potential institutional interest.