Key Points
- Ethereum’s price is on the verge of a significant bullish rebound, driven by increased on-chain activities.
- The Ethereum network has experienced a boost in transactions and new addresses, indicating renewed interest from investors.
The altcoin industry has been slowly recovering, mirroring the recent price recovery of Bitcoin. In line with this, Ethereum has been trying to regain its bullish momentum. The large-cap altcoin, valued at approximately $336 billion and with a 24-hour average trading volume of about $17 billion, saw a more than 2% increase, trading at about $2,811 on Friday, February 21, during the early New York session.
The crypto market’s overall optimism has been on the rise, thanks to the Donald Trump administration’s efforts to provide clear web3 regulations. Furthermore, Ethereum’s fear and greed index has risen from 42% to around 50% in the past 24 hours, indicating a decrease in fear of further capitulation.
Midterm Expectations for Ethereum Price
From a technical analysis perspective, Ethereum’s price is on the brink of a major bull rally that could lead to a new all-time high in the near future. A successful close above the resistance level of about $2,843 could trigger a major bull rally beyond $3K in the coming weeks.
However, a drop below the established support level of around $2,554 could lead to further decline towards $2.2K.
Renewed Interest from Investors
According to market data from IntoTheBlock, the Ethereum network recorded a $35 billion surge in transactions greater than $100K during the past week. On February 16, a total of 3,711 transactions were recorded on the Ethereum network worth more than $100K, while a total of 5,174 transactions were recorded on Friday, indicating a renewed interest from whale investors in the recent past.
The Ethereum network has also seen a gradual increase in new addresses, with a reported increase of about 12.10% over the past week. According to market data from CoinGlass, more than 430K Ether units have been withdrawn from centralized exchanges in the past 30 days, currently hovering at about 15.4 million.
Meanwhile, the demand for spot Ether ETFs in the United States remains relatively low, with a total net outflow of about $13 million recorded on Thursday, and none of the issuers registering net cash inflow.
Fundamental Outlook
The Ethereum network has been facing the rising competition in the web3 space amid notable challenges at the leadership of the Ethereum Foundation and the upcoming Pectra upgrade. Despite significant competition from other layer one (L1) chains, led by Solana (SOL), the Ethereum network remains a leader in DeFi, Dapps, NFTs, and real-world assets (RWA) tokenization.
At the time of writing, the Ethereum network had more than $58 billion in total value locked (TVL) and a stablecoins market cap of around $122 billion. In the past 24 hours, the Ethereum network recorded around 464K active addresses. In the past seven days, the Ethereum network recorded the highest amount of cash transferred from other chains led by Solana, and BNB Chain.
