Ethereum (ETH) is showing signs of a possible turnaround. Its price jumped 9.1% in just 24 hours! This price surge is happening alongside a big increase in network activity.
Increased Network Activity
Ethereum’s active addresses—the number of unique addresses interacting with the network—have skyrocketed. In just two days (April 20-22), they climbed from 306,211 to 336,366—a nearly 10% increase! This suggests a lot more people are using the Ethereum network. However, it’s important to look at other factors like trading volume and transaction fees to get the full picture.
Other Positive Signs
- Transactions: The number of daily transactions also spiked, going from 1.042 million on April 19th to 1.293 million on April 22nd.
- DeFi Growth: Total Value Locked (TVL) in Ethereum’s decentralized finance (DeFi) ecosystem increased significantly, climbing from $46.28 billion to $49.99 billion. While this is good news, it’s still below the peak of around $76 billion in December 2024.
- DEX Trading: Trading volume on decentralized exchanges (DEXs) using ETH also surged, jumping from $932 million to $2.44 billion.
- Technical Indicators: Technical analysis suggests a possible reversal. ETH broke out of a falling wedge pattern (a bullish sign!), and its Relative Strength Index (RSI) broke out of a long-term downtrend. The RSI is currently around 50, hinting at potential for further price increases.
Potential Cautions
While things look positive, there are some warnings:
- Overbought Territory: The Ethereum Fear & Greed Index is at 64, suggesting the price might be getting a bit ahead of itself.
- Resistance Level: ETH might face strong resistance around $2,300 if the upward momentum continues.
Current Price
At the time of writing, ETH is trading at $1,788. Whether this is the start of a sustained bull run remains to be seen.