Ethereum has demonstrated renewed strength both in on-chain activity and market performance, registering a notable surge in active addresses alongside a recent price breakout above a critical resistance level.
Data provided by CryptoQuant analyst Carmelo Alemán reveals that Ethereum (ETH) saw an impressive 9.85% uptick in active network addresses over just two days, rising from approximately 306,000 on April 20 to more than 336,000 on April 22. This sharp increase indicates growing participation in the Ethereum ecosystem, occurring simultaneously with ETH’s recovery of bullish momentum.
Such spikes in active addresses, while not definitive predictors of price movements, often signify rising investor interest and improved market sentiment. Supporting this positive sentiment, Ethereum successfully broke above the $1,650 price barrier that had capped its trading range since mid-April. Encouraged by strong daily buying pressure, ETH quickly climbed past the $1,790 mark, leaving behind the recent consolidation phase.
From a technical analysis perspective, Ethereum’s prospects appear brighter in the near-term. ETH now trades comfortably above its 10-day and 20-day moving averages, suggesting increasing bullish momentum. Further reinforcing this positive outlook, its Relative Strength Index (RSI) hovers just above neutral at slightly over 50, pointing toward mild bullish momentum without being overextended.
Additionally, the Moving Average Convergence Divergence (MACD) recently began indicating a potential shift to an increasingly positive trend, lending further encouragement to bulls. However, not all technical indicators are unequivocally supportive. Specifically, the stochastic RSI is approaching overbought territory, hinting at possible short-term market exhaustion unless additional buying support materializes soon.
One aspect worth monitoring closely is Ethereum’s relatively subdued transaction fee environment. Currently averaging around $0.31 per transaction, network fees remain low, suggesting on-chain demand, while increasing, is still below historical average levels despite low costs.
Overall, Ethereum’s short-term prospects are considerably improved compared to recent weeks, driven by enhanced network activity and a decisive breakout from its recent consolidation range. Should bullish momentum continue to build, the next significant test for ETH will come as it attempts to reclaim the psychologically important $2,000 price level.
