ethereum is up 10% since last Friday, marking a notable rally as the cryptocurrency market reacts to local demand levels. Despite this rally, eth has lagged behind bitcoin and other altcoins in recent months.
However, key data from Santiment highlights an uptick in network activity, suggesting a potential turnaround in ethereum’s performance. While eth continues to face challenges in reclaiming the crucial $2,500 zone, this period of volatility could present a strategic opportunity.
Investors should consider this moment as an opportunity to position themselves and anticipate future gains. With the current momentum and increasing network participation, ethereum’s rally could be on the horizon, offering a promising outlook for those willing to take advantage of its recovery.
ethereum Network Growth: A Sign of Relief
ethereum has been struggling recently, with traders and investors waiting for confirmation that the worst of the selling pressure and negative sentiment has passed. A positive sign is the x.com/i/bookmarks/1828220965718790497?post_id=1833004546215530860″ target=”_blank” rel=”noopener nofollow”>Santiment reported an increase in activity on the network in x, which could be a sign of improving conditions.
On Sunday, a day typically characterized by lower transaction volume, ethereum saw a significant spike in network growth. The number of new wallets created hit a four-month high, with 126,210 new wallets added. This uptick in network utility suggests growing interest in ethereum and may signal a shift in market sentiment.
To maintain this momentum, ethereum price needs to target and test higher levels, particularly in the local supply zone, which is located around $2,550. This price level will be crucial for ethereum to regain strength and establish a solid uptrend.
Investors and traders are on the lookout for further signs of strength as the broader market enters a consolidation phase. Increasing network activity could be an early indicator of a potential rally, so it is essential to keep an eye on ethereum price movements and overall market trends.
eth Price Performance
ethereum is trading at $2,349, after a 10% rally from yearly lows of $2,150. This increase comes after weeks of persistent selling pressure, putting eth at a pivotal level in its price action.
The focus now turns to the 4 hours at 200 km/h. exponential moving average (EMA) at $2,576. For ethereum to maintain its bullish momentum, it must not only break above this key technical level but also close above it in a convincing manner.
Since late July, eth has struggled to maintain a position above this EMA, a major resistance point. The failure to close above the EMA during this period has highlighted a short-term bearish bias. A successful break and close above this level would suggest a potential trend reversal and could signify the start of a more sustained upward move.
However, the situation could worsen if ethereum fails to hold its current price levels and falls below $2,349. A drop below this support could lead to a deeper correction, potentially revisiting yearly lows or even lower levels in the near term. Such a scenario could negatively impact eth holders, introducing increased volatility and risk.
Keeping a close eye on eth’s interaction with the 200 EMA and its ability to sustain above current levels will be crucial in assessing the near-term outlook and potential trend changes.
Featured image of Dall-E, chart from TradingView
