Bitrabo Editorial
Ethereum has experienced a 10% rise since last Friday, indicating a significant recovery as the cryptocurrency market reacts to local demand conditions. However, despite this surge, ETH has not kept pace with Bitcoin and various altcoins over the last few months.
Recent insights from Santiment show an increase in network activity, which may suggest a potential improvement in Ethereum’s performance. Even though ETH is facing challenges in reclaiming the important $2,500 mark, this fluctuating period may present a strategic opportunity for investors.
Investors should view this moment as an opportunity to prepare for potential future gains. Given the current momentum and the uptick in network engagement, a rally for Ethereum might be forthcoming, promising a bright outlook for those ready to invest in its recovery.
Growth in Ethereum’s Network: An Encouraging Indicator
Ethereum has faced difficulties recently, with many traders and investors hoping to confirm that the peak of selling pressure and negative sentiment is behind them. A positive sign is the notable increase in network activity noted by Santiment on X, which could signal better times ahead.
On Sunday, which usually sees lower trading activity, Ethereum recorded a dramatic increase in network growth. The creation of new wallets hit a four-month peak, with 126,210 added that day. This surge in network use indicates growing interest in Ethereum and may reflect a shift in market sentiment.
To keep this momentum going, Ethereum needs to aim for and test higher price levels, particularly around the local supply zone of $2,550. This price point is essential for Ethereum to regain its strength and build a solid upward trajectory.
Investors and traders will be watching closely for additional indications of strength as the wider market enters a phase of consolidation. The rise in network activity could signal the possibility of a rally, highlighting the importance of monitoring Ethereum’s pricing patterns and market trends overall.
Performance of ETH Price
Currently, Ethereum is trading at $2,349, marking a 10% recovery from its yearly low of $2,150. This rise follows several weeks of unrelenting selling pressure, positioning ETH at a critical point in its pricing dynamics.
The attention now shifts to the 4-hour 200 exponential moving average (EMA) priced at $2,576. For Ethereum to keep its upward momentum, it not only needs to break above this crucial level but also to securely close above it.
Since late July, ETH has had trouble staying above this EMA, which is a significant resistance area. The inability to close above this EMA during this timeframe has reflected a bearish trend in the short term. A successful breakout and a secure close above this level could indicate a potential trend reversal, suggesting the onset of a more sustained upward movement.
Conversely, if Ethereum cannot maintain its current price levels and falls below $2,349, it could face further declines, potentially revisiting yearly lows or going even lower soon. Such a scenario could create difficulties for ETH holders, leading to increased volatility and risks.
Monitoring ETH’s interaction with the 200 EMA and its capacity to stay above present levels will be vital for evaluating the near-term outlook and potential trend changes.
Featured image from Dall-E, chart from TradingView