Ethereum Takes The Lead in Address Growth As Analyst Predicts Surge to $7,000 – Here’s How
Key Insights
- Ethereum started the year with a rally and is now trading in the red around the $3,330 price level.
- On the other hand, the Ethereum network is leading in terms of address growth, with more than 600,000 new addresses added since 1 January.
- Prominent analysts like Ali Martinez and Matt Hougan also see an Ethereum upsurge towards the $7,000 mark.
- These great developments could reinstate Ethereum’s position as a leader in the defi space
Ethereum price has been making waves in the crypto market, despite a turbulent start to the year.
The cryptocurrency rallied briefly in early January to trade above the $4,000 price level.
The asset has since slipped into the red, and is now trading below its yearly opening price of $3,330.
Despite this setback, the cryptocurrency is now leading the rest of the market in terms of address-growth.
What’s more, analysts expect that Ethereum could be on the verge of an explosive rally.
Under specific conditions, of course. Let’s go over what these are.
Ethereum Leads Market In Address Growth
According to Santiment in a recent X post, several major players have emerged as leaders in terms of address growth.
Some of these players include Ethereum, Bitcoin, XRP, Cardano, Dogecoin and Chainlink.
Interestingly, Ethereum emerged as the best performer in the lineup, with an impressive 645,000 new addresses added this year alone.
This performance from Ethereum is easily more than 500% more than Bitcoin’s, which emerged as the second-best performer with 102,000 addresses.
According to Santiment, this rise in address creation shows that the communities around these cryptocurrencies are confident in them for the long term.
Ethereum’s Path to $7,000
On the other hand, renowned analyst Ali Martinez recently shared his bullish outlook for Ethereum price.
According to the analyst, Ethereum could rally to $7,000 if something unexpected happens.
In this case, the cryptocurrency might have to dip further to $2,900.
Ali notes that this prediction is based on the formation of a classic technical pattern on the 12-hour chart, known as the inverted head-and-shoulders.
Ali explained that a drop to $2,900 would likely complete the pattern’s right shoulder.
The rally can then start from there, testing the neckline at $4,900 before targeting the $7,000 level.
If this happens, Ethereum could gain over 110% from where it currently sits.
Ethereum’s Recent Struggles
Ethereum holders have endured a challenging few years.
The cryptocurrency has consistently underperformed compared to Bitcoin and Solana for two consecutive years.
Despite its dominance in the defi and tokenization sectors, its price struggles have turned its community into a target for memes within the crypto space.
However, if this rally shows up, it could bring some much-needed relief to its holders.
Interestingly, Martinez’s $7,000 target aligns with a similar one from Matt Hougan, the Chief Investment Officer at Bitwise Asset Management.
According to Hougan, Ethereum is a “contrarian play” for 2025, considering its leadership in DeFi and its growing influence within the industry.
The Broader Implications for Ethereum
A rally to $7,000 wouldn’t just signify recovery for Ethereum.
It could also reinstate its position as one of the biggest players in Defi. Ethereum continues to be the backbone of the defi sector according to DefiLlama, and is home to the majority of defi projects.
DefiLlama data shows that Ethereum currently has a TVL dominance of 54.7%, which means that it makes up more than half of the defi ecosystem.
Ethereum’s surge to $7,000 could also trigger a rise in asset tokenization across the real estate and financial instrument markets.
The network also has ongoing developments to enhance its stability and reduce its fees.
Overall, If the inverted head-and-shoulders pattern plays out as predicted, Ethereum could be set for a remarkable comeback.
