Ethereum (ETH) soared above $2,100 on Friday, showing a rapid recovery from the initial disruption caused by the abrupt departure of Binance founder Changpeng Zhao. At this time, the question is whether the bullish momentum will enable ETH price to exceed $2,500 and establish a fresh peak in 2023.
The cryptocurrency markets underwent a slight retracement last Wednesday after Changpeng Zhao's departure from Binance after the resolution of a $4.3 billion dispute with the US SEC. In addition to the controversial headlines, recent on-chain data indicates a significant increase in the number of new Ethereum user addresses.
Ethereum On-chain Metrics Analysis
According to the New Addresses chart on Glassnode, 94,451 new ETH addresses arose on the Ethereum network as a result of recent events. Upon further analysis of the on-chain date, it becomes evident that the surge in new users of Ethereum has been unprecedented since July 2023, signifying a peak of five months.
The increase in ETH New Addresses on November 20 indicates that investors elected to transfer their coins to new wallets, as opposed to frantic selling. The resilience exhibited by crypto investors implies that they do not anticipate the incident with CZ to have an enduringly negative effect on the crypto industry.
Ethereum Price (ETHUSD) Technical Analysis
In the daily chart of ETHUSD, the overall market direction is bullish, where consolidation is seen below the 2136.63 double top level. As the recent price shows no significant movement below this crucial level, investors might expect a downside correction before forming a stable bullish trend.
On the bullish side, a downside correction is possible towards the 1907.75 static level from where a strong bullish rejection is possible. In that case, an additional upward pressure and a daily candle above the 20 EMA could be a long sign, aiming for the 2341.00 Fibonacci Extension level.
On the bearish side, a sharp bearish pressure below the 1900.00 mark could be an alarming sign, which could extend the downside pressure toward the 1772.91 support level.