Ethereum network activity rises with price rally – is bullish reversal coming?

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Ethereum network activity rises with price rally – is bullish reversal coming?

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Ethereum (ETH) is start To show signs of a potential bullish reversal, the second-largest cryptocurrency has climbed 9.1% in the past 24 hours. In addition to the price increase, Ethereum’s network activity has risen significantly.

Ethereum network activity explodes in price rally

According to a recent crypto-fast post by analyst Carmelo_aleman, the activity address of Ethereum has soared significantly in the past few days. Between April 20 and April 22, ETH Active address jumped from 306,211 to 336,366, up 9.85% in just 48 hours.

As of April 22, the number of active addresses on Ethereum has soared to 336,366 | Source: Encryption

Analysts point to this sharp rise in active addresses point to an increase in on-chain activity. However, they warned against analyzing the metric in isolation, emphasizing the need to track other metrics such as exchange volume, transaction counting and gas fees for a more comprehensive situation.

Latest data It is shown from YCHARTS that every day Ethereum transaction has witnessed a huge peak in the past few days. Specifically, the number of transactions has risen from 1.042 million on April 19 to 129,300 on April 22.

Additionally, Defilama reports a significant increase in total value lock-in (TVL) across the entire Ethereum Decentralized Financing (DEFI) ecosystem. It is worth noting that TVL rose from $46.28 billion on April 19 to $49.99 billion at the time of writing.

Despite recent growth, TVL is still well below its heights of about $76 billion in December 2024. Trading volumes on ETH-based diversified exchanges (DEXs) have also soared, jumping from $932 million on April 20 to $2.44 billion today.

DEX volume — DEX trading volume on Ethereum chain soars over the past few days | Source: Defillama

In addition to bullish chain indicators, technical indicators also point to potential reversals. In X’s latest article, cryptocurrency analyst Titan Highlight ETH has shed a wedge pattern on the daily chart, a classic bullish signal.

ETH has shed wedge pattern from daily chart | Source: Titan of cryptocurrency on X

In addition, Ethereum’s Relative Strength Index (RSI) has escaped its long-term downward trend. RSI is currently hovering around 50, which indicates a lot of room up Momentum, if the price follows litigation.

Some warning signs for ETH

Despite the improved sentiment, Ethereum’s fear and greed index is Flashing The reading is 64 – indicating that ETH may enter too much territory at current price levels.

In addition, ETH can face Strong resistance If the current bullish momentum continues to move forward, it will be around $2,300. At press time, ETH traded at $1,788, up 9.1% over the past 24 hours.

Featured images from unsplash.com, charts from cryptoFuant, X and TradingView.com

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