Ethereum is experiencing a surge in network demand that has pushed new address creation to its highest level in over 13 months, even as the price of the second-largest cryptocurrency trades sideways following the landmark approval of spot Bitcoin exchange-traded funds. On-chain data from Santiment reveals that 636,480 new Ethereum addresses were created on January 11, 2024 — the highest single-day figure since November 2022 — signaling that investor interest in the broader crypto ecosystem extends well beyond Bitcoin.
TL;DR
- Ethereum network demand hits 13-month high with 636,480 new addresses created on January 11
- ETH price briefly rallied above $2,700 on January 12, reaching levels last seen in April 2022
- Accumulation continues to outpace sell-offs despite sideways price action
- RSI at 70.68 and MFI at 87.41 indicate overbought conditions with sustained buying pressure
- ETH network growth climbed 6% over a three-week period according to Santiment
A Demand Surge Sparked by ETF Approval
The spike in Ethereum network activity coincided directly with the U.S. Securities and Exchange Commission’s approval of spot Bitcoin ETFs on January 10. While the regulatory decision was Bitcoin-specific, its impact rippled across the entire cryptocurrency market. According to Santiment data cited by AMBCrypto, the creation of 636,480 new ETH addresses on January 11 represented the highest daily count since the collapse of FTX roiled markets in November 2022.
The demand surge was immediately reflected in price action. On January 12, ETH rallied above $2,700 — a level not reached since April 2022, according to CoinMarketCap data. The rapid ascent demonstrated that the Bitcoin ETF approval served as a broader catalyst for crypto market sentiment, with investors positioning themselves for potential follow-on products tied to Ethereum and other digital assets.
Technical Indicators Tell a Bullish Story
Despite the subsequent pullback in ETH’s price — which settled around $2,467 by January 18 — key momentum indicators suggest that accumulation remains strong. The Relative Strength Index (RSI) for ETH stood at 70.68 on the seven-day chart, firmly in overbought territory. The Money Flow Index (MFI) was even more elevated at 87.41, indicating significant capital inflows into the asset.
Meanwhile, ETH’s Chaikin Money Flow (CMF) registered a positive reading of 0.15. When the CMF is above zero, it signals that buying pressure outweighs selling pressure in the market. At 0.15, the indicator confirmed that accumulation persisted even as the price moved sideways in a narrow range following the initial post-ETF rally.
The Bollinger Bandwidth for ETH trended upward during this period, with the gap between upper and lower bands widening — a classic confirmation that volatility remained elevated. This high-volatility environment, combined with overbought momentum readings, suggests that while ETH may be due for a short-term cooling period, the underlying demand dynamics remain firmly positive.
Network Growth Outpaces Peers
Santiment’s data also highlighted that Ethereum’s network growth outperformed many of its altcoin competitors over the three-week period ending January 18. ETH recorded a 6% increase in network growth, trailing only a handful of tokens like ENS (up 124%) and Threshold (T, up 195%) in terms of new address creation momentum. On the declining side, tokens such as Enjin Coin (ENJ, down 32%), Basic Attention Token (BAT, down 42%), and ApeCoin (APE, down 23%) saw significant network contraction.
The divergence in network growth metrics suggests that capital is flowing toward established, fundamentally backed projects rather than speculative alternatives. Ethereum’s position as the leading smart contract platform and the foundation for decentralized finance, NFTs, and layer-2 scaling solutions makes it a natural beneficiary of renewed market optimism.
The ETF Halo Effect
The broader significance of Ethereum’s demand surge lies in what it signals about the evolving crypto market structure. The spot Bitcoin ETF approval did not merely boost BTC-related activity — it triggered a wave of interest across the entire digital asset ecosystem. Market participants appear to be pricing in the possibility that Ethereum spot ETFs could be the next regulatory milestone, a thesis supported by the immediate uptick in ETH network activity and derivatives market engagement.
The sustained accumulation pattern, as evidenced by the CMF and MFI readings, also suggests that investors are not simply chasing short-term momentum. The willingness to continue buying through a period of sideways price action and elevated volatility indicates conviction in Ethereum’s medium-to-long-term prospects — particularly as the network continues to mature following its transition to proof-of-stake.
Why This Matters
Ethereum’s demand reaching a 13-month high in the wake of the Bitcoin ETF approval underscores a critical dynamic in the current crypto market: regulatory breakthroughs for Bitcoin serve as rising tides that lift all boats. The 636,480 new addresses created in a single day, the price push above $2,700, and the persistently bullish technical indicators all point to an asset class that is entering a new phase of mainstream institutional and retail engagement.
For investors and market observers, the key takeaway is that the Bitcoin ETF narrative is not Bitcoin-exclusive. As traditional finance deepens its involvement in crypto through regulated vehicles, the spillover effects into Ethereum and the broader altcoin market are becoming increasingly tangible and measurable through on-chain data.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
636K new ETH addresses in a single day is massive. That was November 2022 levels of activity triggered purely by the BTC ETF approval spillover.
636K addresses sounds bullish until you realize a huge chunk were probably sybil farming for airdrops. address creation alone is a noisy metric
even discounting sybils, layer 2 airdrop farming was responsible for a massive chunk of that address growth. base, starknet, scroll all had upcoming tokens in Q1 2024
Devon M. base starknet and scroll sybil farms were probably 200K of those 636K addresses alone. the real organic growth number is way lower
base airdrop farming alone probably generated 100K of those addresses. scroll and starknet sybil activity was off the charts in january 2024. the real organic number is probably 250K at best
sybil farming was real but even if you discount 40% of those addresses the remaining 380K is still massive for a single day
chart_nerd_ even 380K organic addresses in one day is still impressive. the problem is santiment and on-chain metrics stopped correlating with price moves in 2023
RSI at 70 and MFI at 87 was screaming overbought but accumulation outpacing sell-offs meant the smart money was still buying ETH under $2,700.
Network growth climbing 6% in three weeks with ETH going sideways was the classic divergence. Santiment data was flashing bullish back then.
Mieko T. the fact that accumulation kept going despite those overbought readings tells you how strong the ETF narrative was. indicators mean nothing when a new demand source enters
ETH holding above 2700 while BTC dominated ETF headlines was quietly one of the most bullish setups of that cycle. capital was flowing into the ecosystem not just BTC
ETH above 2700 with RSI at 70 was the textbook accumulation signal. anyone who got in there rode it to 4k
textbook until RSI hit 78 and ETH pulled back to 2300 two weeks later. the ETF pop was a sell the news event for ETH specifically
sniper_bot_ RSI at 78 and pulling back to 2300 two weeks later. the BTC ETF approval was the ultimate sell the news for ETH
RSI at 70.68 was a textbook overbought signal. anyone who bought at 2700 got a front row seat to ETH bleeding to 2300. ETF approval was the ultimate sell the news event for alt holders
RSI at 70.68 and MFI at 87.41 screaming overbought and ETH still bled for 3 weeks. ETF approval was sell the news for alt holders
636K addresses in one day from ETF approval news. meanwhile ETH price went up 5% and then bled back down for 3 weeks. network growth metrics and price action have been disconnected since 2023
eth_mom_ base airdrop farming was 100K of those addresses minimum. scroll and starknet sybils added another big chunk. the organic number is impressive but way smaller than 636K
sybil_realist_ even at 380K organic thats still massive. people forget ETH was at $2700 with spot ETFs incoming, the address growth was a leading indicator
sybil_realist_ youre being generous with 250K organic. base sybil farms alone were generating 200K+ wallets. the real number is probably under 200K
636K addresses in one day and ETH still bled for 3 weeks after. network growth metrics and price have been completely disconnected since 2023
Rasmus L. network growth and price decoupling is the real story. 636K addresses and ETH still bled. metrics that dont predict price are just trivia
Rasmus L. network growth and price disconnected since 2023 is the real takeaway. 636K addresses and ETH still bled. fundamentals dont matter when BTC is sucking all the liquidity
636K addresses and ETH bled for 3 weeks anyway. network growth metrics stopped predicting price somewhere in 2023 and never recovered. Santiment data is noise now
Inkeri S. the sybil problem makes address creation basically useless as a metric post-2023. Base airdrop farms alone generated hundreds of thousands of wallets that year
even discounting 40% sybil farming, 380K organic new addresses in one day is still massive. people forget the ETF approval narrative was pulling real capital in
636K addresses and ETH went sideways then down. on-chain growth metrics stopped predicting price moves in 2023 and never recovered