Ethereum Sets Record With 94,000 New Users – Will it Drive ETH Price to $2,500?

Ethereum Price Insights:

• Ethereum (ETH) price reclaimed $2,100 on Friday as markets swiftly recovered from the shock exit of Binance founder Changpeng Zhao. 
• On-chain data trends show that Ethereum welcomed 94,451 New Users on November 20, the highest in H2 2023. 
• The timing of the move affirms investors’ confidence in Ethereum’s long-term prospects.

Ethereum (ETH) price reclaimed $2,100 on Friday as the crypto markets swiftly recovered from the shock exit of Binance founder Changpeng Zhao. Can the bulls capitalize on the wave of new users to push ETH prices to a new 2023 peak above $2,500?

Ethereum Sets a New Milestone With 94,000 New Wallets

The crypto markets entered a mild retracement last Wednesday following the news of Changpeng Zhao’s exit from Binance as part of a $4.3 billion settlement with the US SEC. But away from the sensational headlines, recent on-chain data trends show that Ethereum recorded a significant number of new user addresses.

Glassnode’s New Addresses chart below shows that in the aftermath of the news events, 94,451 new ETH addresses were created on the Ethereum network.

Notably, a closer look at the chart clearly shows that the last time Ethereum recorded this much traction from new entrants was 5 months ago, back in July 2023.

By summing up new Ethereum wallets created daily, the New Addresses metric tracks the rate at which the blockchain network attracts new users. Typically, an increase in new wallets logically means that users are creating new accounts. As these new wallets begin to carry out transactions, it increases market demand for ETH.

However, the timing of this spike in new ETH wallets suggests that the milestone occurred in relation to the leadership upheaval at Binance.

It appears that, in a bid to avoid feared sanctions, fund seizures, or other forms of operational frailties, a huge number of Ethereum users shifted their funds from Binance into other trading platforms or alternative storage options.

Rather than panic-selling their holdings and closing out their positions, the spike in ETH New Addresses on November 20 shows that investors instead shifted their coins into fresh wallets.

This shows that crypto investors are confident that the SEC’s $4.3 billion hammering of Binance and CZ’s ouster are unlikely to have a lasting negative impact on the broader cryptocurrency industry.

This display of resilience further affirms the Ethereum markets’ maturity and investors’ confidence in the long-term viability of the broader crypto economy. If the bulls can capitalize on this dominant bullish sentiment, they could drive ETH price closer to $2,500 in the days ahead.