Ethereum is on fire! It’s up 29% in the last week and almost hitting its all-time high of around $4,800 (set in 2021). Right now, it’s trading at about $4,662, getting close to a major resistance level between $4,750 and $4,800.
Record-Breaking Network Activity
But it’s not just the price that’s exciting. Ethereum’s network activity is absolutely exploding! Daily transactions have hit a new record of roughly 1.875 million. That’s a huge amount of activity, showing strong demand. This high activity, combined with the price nearing a key resistance point, creates a really interesting situation.
A Crucial Decision Point
Analysts see this as a make-or-break moment. If Ethereum breaks through the $4,750 resistance and keeps the high transaction volume, it could shoot past its previous all-time high. However, if the price stalls here, we might see a period of consolidation or even a drop back towards $3,950. It’s important to remember that even with all this positive activity, a price correction is possible. The market could be getting a bit overheated.
Strong Buying Pressure: Money’s Leaving Exchanges
Looking at the flow of Ethereum on exchanges, we see even more positive signs. Over the past month, more Ethereum has been leaving exchanges than entering. This is a big deal because it suggests that people are holding onto their ETH instead of selling, which reduces selling pressure and supports higher prices. Analysts link this to institutional investors buying up ETH, possibly driven by interest in ETH ETFs. As long as this trend continues, the price is likely to keep rising. However, if more ETH starts flowing into exchanges, that could signal a shift in sentiment and potentially slow down the price increase.
The Bottom Line
Ethereum is in a really interesting spot. Record transaction numbers and lots of institutional buying are strong positive indicators. Whether it can finally break through that $4,750 resistance is the big question. The next few days will be crucial to see if it can sustain this momentum or if a correction is on the horizon.
