Ethereum’s network activity appears to be rebounding, as evidenced by a significant increase in active addresses over the past 24 hours. Concurrently, the proportion of the total supply in profit increased to 63%, reinforcing the prevailing bullish sentiment within the network, as the majority of holders opt to retain their positions rather than engage in short selling. What is more intriguing is that both developments occur at a critical intersection of an ascending trendline and the 200-EMA support level at $2.33K. The network’s price action is already positively reacting to the demand zone, as the token is now trading at 2,429. Could the positive sentiment initiate an ETH recovery and propel it above the current consolidation range?
Recent network activity data indicates that Ethereum’s active addresses increased by 89,000, reaching a total of 389,000 in the last 24 hours. The significant rise indicates that on-chain engagement is gaining momentum. For investors, if the rise persists, it may suggest an increase in demand for network transactions and applications. However, active addresses do not necessarily indicate unique users or direct purchases of ETH. It is also worth noting that these datasets can rise during periods of increased transfers, trading, or speculative activity. The percentage of ETH supply in profit has climbed to 63%, indicating that a greater proportion of circulating tokens is trading above their acquisition price.
Recent profitability data indicates that on-chain volume in profits reached $1.70 million on October 18th, a noteworthy figure that supports the continuation of bullish momentum. This improvement may bolster sentiment by decreasing the share of holders encountering unrealised losses. In tandem with the increasing network activity and profitability, Ethereum’s Funding Rate has reached a new weekly peak at 0.007. This indicates that investors are expecting additional upward movements. This could be attributed to Buterin’s emphasis on AI security, which has led to an influx of major institutions gravitating toward the network. The zone of confluence at the 2,330 zone will be key to the token price action in the short run.
With the token now reclaiming the 200-day support, it is more probable that bulls will extend their dominance. If buyers defend this support, ETH could attempt to recover from its current consolidation range and likely target $2.8K. A decisive breakout above that boundary would bolster the recovery narrative. However, a sustained move below $2,330 would weaken the setup and expose ETH to further downside. Overall, the current landscape indicates that the increasing network activity and enhanced profitability for holders present positive indicators.
