Ethereum Adoption Hits 40% Newcomers as RSI Pops — Will Price 2x Again?

Key Insights:

• 40% of Ethereum users last week were first-time participants, showing rising adoption.
• ETH breaks out of falling wedge pattern, with RSI confirming potential price reversal.
• ETH lags in 30-day returns, down 13%, while Bitcoin and gold posted strong gains.

Recent users of Ethereum are showing strong signs of renewed network activity, with 40% of them being new to the network. However, ETH lags in recent returns, at the same time, technical indicators such as the RSI and falling wedge breakout hint at a trend reversal.

New Ethereum Users Surge Despite Market Decline

According to recent blockchain data, new Ethereum users are soaring. IntoTheBlock says that 40% of Ethereum wallets active in the last week are new wallets. This is the “New Adoption Rate” which is the percentage of first-time users transacting on the network.

The timing is what stands out. Ethereum’s price is falling, yet this is the time when adoption is increasing. ETH has now fallen to around $1,742 by April 2025, down from more than $4,000 just months earlier. This decline notwithstanding, the network is still welcoming new users at one of the highest rates in recent years.

If this trend continues, it may be a sign that people are becoming less interested in speculating on short-term price action, and more interested in the long-term utility of Ethereum. Instead of just buying and selling the token, users might be using decentralized applications, smart contracts, or blockchain games.

Breakout from Falling Wedge and RSI Signals Trend Shift

On the other hand, Ethereum’s technical chart also indicates that it may have turned the corner. Over several months, prices had been falling within a narrowing range, forming a falling wedge pattern.

Ethereum’s price broke above the wedge resistance in mid-April. In addition, the Relative Strength Index (RSI), a momentum price indicator, broke out of a long-term downtrend at the same time. RSI breakouts are often considered early signals that price will follow.

Merlijn, an analyst, commented, “$ETH is breaking out of a multi-month falling wedge.” RSI just confirmed the move with a clean breakout.” In past cycles, a similar move resulted in Ethereum doubling in price within a short period.

Although technical setups don’t always lead to results, this breakout has traders’ attention. More buyers could re-enter the market if the price holds above the breakout level and starts to form higher lows. The chart also shows a potential target between $2,500 and $3,500 if the move continues.

ETH Lags Behind in 30-Day Performance Metrics

However, Ethereum has underperformed in the past month despite rising adoption and technical signals. ETH is down 13.29% on a 30-day performance chart against the US dollar. That makes it the worst performer among major assets in the comparison.

Over the same period, Bitcoin rose 7.86%, while gold rose 7.98%. Other assets, such as the Swiss Franc, Euro, and even the Japanese Yen, returned positive. The S&P 500 fell 5.04%, and Ethereum’s performance was no better, falling below stocks.

“Bitcoin outperforming with gold, while ETH underperforming with stocks,” analyst Joel Kruger commented. He added that once investor appetite for risk returns, Ethereum could do better.

The growing adoption and bullish technicals have been a mixed picture with this underperformance. ETH is currently weak relative to other assets, but it may be on the verge of a rebound if market conditions change.

Ethereum is in a key phase, according to Market Cycle Chart.

Meanwhile, the four phases of a cycle-based chart are Bitcoin, Ethereum, large caps, and altseason. Each is a rotation of capital from one asset group to another. By this framework, Ethereum is now in “Phase 2.”

This phase sees Ethereum outperforming Bitcoin as the focus shifts into altcoins. The chart implies that when this occurs, traders start moving money from BTC into ETH in hopes of finding greater returns.

If the pattern continues, we might see capital inflows into ETH that would have gone to Bitcoin. This stage, combined with the wedge breakout and user growth, may lead to larger altcoin rallies later.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.