As the market recovers bullish momentumEthereum price swung upwards, approaching the $2,200 level. Looking at recent on-chain data, this positive performance is starting to reflect on the ETH network, with transactions executed on-chain reaching significant levels.
The number of daily transactions on Ethereum climbs
Ethereum price action is moving in tandem with the network’s performance, raising speculation about whether ETH is gaining momentum for a potential rally. With Ethereum price currently breaking key resistance points, the network is reaching levels not seen in months.
In an X post, CW, CryptoQuant data analyst and investor, published that activity on the Ethereum network increases at a notable rate. According to the analyst, the number of daily transactions on the network is increasing exponentially, indicating a sharp increase in user engagement.
Furthermore, this increase in the number of daily transactions implies that more participants are interacting with decentralized applications, transfers and on-chain services. All these crucial factors reflect renewed request and increasing utility across the ecosystem, which could result in sustained market dynamics.
Although the price of ETH has declined this year, activity on the leading network has remained at an all-time high. At this point, CW says the increase in daily trading is not a sign of a bear market. The price of Ethereum may have fallen, but some investors are displaying strong resilience beneath the surface, bolstering network growth as the trend continues.
ETH price approaches short-term realized price
In terms of price evolutionEthereum continues to trade in a short-term range, with the altcoin currently valued at around $2,150. After a brief analysis, Darkfost, another CryptoQuant author and market expert, announcement that the price is very far from the average realized price, which currently stands at the $2,300 level.
This level generally serves as a structural and psychological barrier that separates profit from loss for a significant portion of the market. ETH approaching this level signals a critical inflection point. By applying a standard deviation, the model helps project a high average price currently estimated at $5,300 and a low average price at $1,150.
Thus, Darkfost pointed out that Ethereum is positioned in the middle of this situation. realized price zone, which suggests that the best strategy for those looking to gain medium to long term exposure is to wait out the market. Given current market conditions, this strategy is proving valid. In this market structure, the realized price, which acts as resistance, should also serve as a break-even point for some investors.
At the time of writing, the ETH price was trading at $2,117, down more than 2% in the last 24 hours. Its trading volume moves in line with price action, recording a decline of more than 7% over the past day.
Featured image from Unsplash, chart from Tradingview.com
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