In January 2025, Ethereum’s network metrics achieved significant milestones, witnessing a surge in new address creation to a level not seen in 27 months, despite recent price adjustments.
This increase in network activity offers valuable insights into potential market trends and adoption dynamics.
Price Analysis and Technical Outlook for ETH
At the time of writing, the ETH/USD pair was valued at $3,051.36, showing a noticeable 5.57% decline in recent trading sessions.
The crossing of the 50-day moving average (3,452.83) and the 200-day moving average (2,988.11) persisted in a bullish form, even though the price dropped below the 50-day moving average.
The trading volume reached 75.74K ETH, indicating significant market participation during the sell-off period.
The Chaikin Money Flow (CMF) indicator stood at -0.04, hinting at a slightly bearish money flow but remaining close to neutral territory.
This technical configuration reflects short-term selling pressure despite maintaining the long-term bullish market structure.
Analysis of Network Growth
Data analysis by CryptoCrypto on Glassnode’s data disclosed a notable spike in new Ethereum addresses.
Between January 24th and 25th, the number of addresses surged to around 200,000, a level not witnessed since October 2022.
This surge marked a significant rise from the average daily address creation of 100,000-120,000 observed throughout most of 2024.
The influx of new ETH addresses coincided with increased market volatility, indicating that the price movements might be attracting fresh market entrants despite recent market corrections.
Historical data illustrates similar trends of address growth during periods of exploring new price levels and uncertain market conditions.
Growth in Addresses with Non-Zero Balances
The count of Ethereum addresses holding a non-zero balance has consistently moved higher, reaching 136 million in January 2025.
Despite price fluctuations, these balances have exhibited remarkable resilience, indicating robust network adoption beyond speculative trading activities.
The persistent growth in addresses with non-zero ETH balances, in contrast to the volatile price movements, implies a growing base of long-term holders and active users engaging with the Ethereum ecosystem.
This discrepancy between price action and adoption metrics often precedes significant market shifts.
Implications for ETH in the Market
The combination of a substantial increase in new addresses and a continuous rise in addresses with non-zero balances presents an intriguing market dynamic.
While the short-term weakness in ETH’s price was evident, the underlying network metrics indicated expanding adoption and potential accumulation at current price levels.
This disparity between price movements and network growth could signal an upcoming divergence that historically foreshadows significant market shifts.
The sustained rise in network engagement, especially during price corrections, typically indicates growing market maturity and potential interest from institutional investors.