Recent data indicates that Ethereum’s ascent beyond $2,600 was driven by a resurgence in whale activity, a notable increase in non-empty wallets, and significant advancements in the staking sector. While the increase in whale transactions does not definitively signify accumulation, as substantial transfers can reflect both buying and selling activities, the price movements of the underlying asset appeared to favour purchases. The intelligence data indicates that the number of non-empty Ethereum wallets has reached a new high of over 207 million. The figure indicates that ETH ownership persists in its expansion despite several months of comparatively subdued price movements.
At the same time, a significant fraction of Ethereum’s circulating supply is actively engaged in the network rather than remaining dormant. With entities such as Bitmine actively staking their substantial tokens, the number of ETH currently staked has increased to over 40 million. Furthermore, Ethereum maintains its dominant position in the decentralised finance sector, boasting approximately $50 billion in total value locked. This combination underscores a more extensive observation regarding the recent recovery that propelled the largest altcoin from below $2,400 just days ago to surpassing $2,600 at present. The investment rationale for Ethereum extends beyond mere short-term price speculation.
Instead, ETH continues to be significantly integrated into staking, stablecoins, lending, DEXes, and various DeFi applications. Separately, the utilisation of the network has seen a significant reduction in costs, with the average transaction fee now below $0.1, representing a decline of over 85% from the peak observed in April, which was $0.72. The improving on-chain backdrop coincides with the underlying asset nearing another significant technical area. Popular analyst Ted Pillows has identified the current resistance zone as a significant obstacle in ETH’s recovery trajectory, with a sustained breakout possibly paving the way for new local peaks.
On the short-term scale, Pillows indicated that if ETH closes above $2,550 this week, it will strengthen its prospects of advancing toward the $2,900-$3,000 range, akin to the recent predictions made by Ali Martinez. The longer timeframe, however, could prove to be even more favourable for the altcoin, as Pillows has indicated a substantial target of up to $10,000, given that the asset has “a lot of catching up to do with global M2 supply.”
