Ethereum Sees 10% Surge in Active Addresses Amid Price Rally

Ethereum has recently experienced a significant uptick in network activity, with active addresses increasing by nearly 10% over a 48-hour period. This surge coincides with a notable rise in the price of ETH, which has broken through a key resistance level, signaling potential bullish momentum in the market.

Key Takeaways

• Active Ethereum addresses rose from approximately 306,000 to over 336,000 between April 20 and April 22.

• ETH price surged past the $1,650 resistance, reaching over $1,790.

• Increased network activity suggests growing investor interest and participation.

• Technical indicators show potential for further price increases, but caution is advised due to possible overbought conditions.

Ethereum's Price Breakout

The price of Ethereum (ETH) has recently surged, breaking through a significant resistance level that had constrained its movement for over a week. As of April 22, ETH was trading at approximately $1,790, marking a 9.1% increase in just 24 hours. This breakout is seen as a positive sign for investors, indicating a potential shift in market sentiment.

Surge in Active Addresses

According to data from analysts, the number of active Ethereum addresses jumped from 306,211 to 336,366, representing a 9.85% increase. This rise in active addresses is often viewed as a precursor to increased market activity and investor interest.

• Active Addresses: 336,366 (as of April 22)

• Previous Active Addresses: 306,211 (as of April 20)

Network Activity and Transaction Volume

In addition to the increase in active addresses, Ethereum's network activity has also seen a significant rise. The number of daily transactions climbed from 1.042 million on April 19 to 1.293 million by April 22. This increase in transaction volume is a strong indicator of heightened interest in the Ethereum network.

• Daily Transactions: 1.293 million (April 22)

• Previous Daily Transactions: 1.042 million (April 19)

Furthermore, the Total Value Locked (TVL) in Ethereum's decentralized finance (DeFi) ecosystem rose from $46.28 billion to $49.99 billion during the same period, reflecting growing confidence in DeFi projects built on the Ethereum blockchain.

Technical Indicators Pointing to Bullish Momentum

Several technical indicators suggest that Ethereum may be on the verge of a bullish reversal. The Relative Strength Index (RSI) is hovering around 50, indicating that there is room for upward momentum without being overbought. Additionally, the moving average convergence/divergence (MACD) has shown early signs of a trend shift, turning slightly positive.

However, caution is warranted as the Ethereum Fear & Greed Index currently reads 64, suggesting that the market may be entering overbought territory. If the bullish momentum continues, ETH could face resistance around the $2,300 mark.

Conclusion

The recent surge in Ethereum's active addresses and price indicates a potential shift in market sentiment, with increasing participation from investors. While technical indicators suggest a bullish outlook, market participants should remain vigilant of potential resistance levels and overbought conditions. As Ethereum continues to gain traction, the coming days will be crucial in determining whether this momentum can be sustained and lead to further price increases.

Sources

• Ethereum active addresses jump 10% in 48 hours, Crypto News.

• Ethereum Network Activity Spikes As Price Rallies - Bullish Reversal Coming?, Bitcoinist.com.