Ethereum network activity is gaining momentum. Concurrently, the market positioning appears to be considerably more uncertain. Particularly as sentiment is shifting rapidly at this moment! The divergence between on-chain activity and trader behavior adds an intriguing layer to the ETH landscape. Ethereum’s monthly active addresses surged to 15.19 million, marking a new all-time high! The surge has been significant and steady; activity has increased by 38% in the past month, 71% over the last six months, and an impressive 114% year-over-year.
There’s a notable uptick in user engagement with the Ethereum network, as individuals are increasingly involved in transfers, applications, and smart contracts. The speed of the recovery has been remarkable, particularly following a subdued period at the end of last year. Funding rates have experienced a positive shift on several exchanges, with BitMEX standing out prominently. ETH’s funding rate surged to 0.049%, marking the highest point since October and significantly surpassing the late-October peak of approximately 0.03%.
Simultaneously, Binance appeared to be quite intriguing as well. ETH funding has shifted from significantly negative levels of approximately -0.025% on February 5, moving back towards a neutral position. Shorts are retreating as new Open Interest is being fueled by longs. To date, this influx of positive funding has not translated into upward movement. However, it does elevate the risk of pullbacks if crowded long positions are compelled to unwind. Following the latest sell-off, ETH has established a temporary support level in the $2,000-$2,200 range. This range-bound movement indicates that the selling pressure has subsided. Despite the current trends, buyers remain somewhat skeptical at this point.
The RSI has risen to the low 30s, providing a brief moment of relief. The volume has indeed settled following the recent surge. It seems that the urgency might be diminishing, possibly. As leverage accumulates in derivatives and the price remains delicate, the forthcoming movement could hinge on spot demand. Ethereum’s on-chain activity has surged to an impressive 15.19 million active addresses! BitMEX funding stood at 0.049%, while the altcoin’s price remained stagnant on the charts.