Bulls demonstrate resilience, and despite the recent setback, there is still a bullish prognosis for the price of Ethereum (ETH). Technical indicators and on-chain data support the intermediate trend, which means that the second-largest cryptocurrency by market capitalization has more upside potential.
The Ethereum network is growing and seeing an increase in active addresses.
According to Santiment researchers, the price of Ethereum is still driven by network expansion and an increase in daily active addresses. With this action, ETH has recovered above $2,345—a level that was last tested during the crash on January 22. According to the researchers, “it is the pillar to justify an increasing ETH market cap.” They credit this to the improved utility.
In the meantime, the price of Ethereum has overcome resistance from the 500-day Simple Moving Average (SMA) at around $2,332 to return to the fold of the ascending parallel channel. A surge in purchasing pressure above this level can help ETH break through the immediate resistance level of $2,388. This level is crucial since it kept the price of Ethereum from rising during December and the first week of January.
In a very bullish scenario, the price of Ethereum might continue rising to challenge the channel’s midline at $2,600 or extend the gains to recapture the range high at $2,717, which was last touched in mid-January.
Ethereum’s price might reach the psychological $2,800 mark in the very ambitious case, which would be around 20% higher than current levels.
On-chain analytics back up the optimistic price forecast for Ethereum.
ETH daily active addresses have been steadily increasing over the past three months, going from 404,000 to 469,000 since October. According to Santiment analysts, 101,000 new ETH addresses are created every day, which is a 16% increase. The number of distinct addresses used in ETH addresses each day, and consequently, new crowd involvement, is displayed by the daily active addresses indicator.
Additionally, since October, the network growth indicator has increased by 18%, rising from 72,300 to 85,600. Security experts report that 484,000 distinct addresses have interacted with the ETH network daily. This indicator displays the rate of user adoption over time, indicating the project’s growth or decline.
On the other side, the price of Ethereum may fall towards the demand zone that currently serves as a bullish breaker between $2,059 and $2,118 if profit takers take advantage of the 9% gains earned after Ether turned around the 100-day SMA at $2,172. The slide would be confirmed if it broke and closed below its midline at $2,091, possibly reaching the support confluence between the 200-day SMA and the horizontal lime at $1,935. The bullish premise would be refuted if this buyer congestion level were to disappear.