Markets
Ethereum Price Expects $4K This Week as Network Usage Increases 56%
Ethereum price consolidated in the tight range of $3,550 to $3,400 over the weekend, however, spikes in on-chain activity suggest investors are bracing for a major shift in market momentum next week .
Ethereum Price Volatility Increases as ETF Launch Approaches
ETH, the second-largest cryptocurrency, has been subject to intense market volatility over the past week. Prolonged delays surrounding the official launch of Newly Approved ETH Spot ETFs has generated anxiety, not just among Ethereum holders, but also among investors in global crypto markets.
However, the latest filings reported by Bloomberg show that companies like Blackrock and VanEck have changed control in terms of final adjustments to their Ethereum ETF applications.
On June 21, Bloomberg analyst Eric Balchunas revealed that institutional fund sponsors had filed their final S-1 applications with the U.S. Securities and Exchange Commission (SEC).
This brings applicants closer to final approval before the official listing date is announced, a move that could trigger a massive market reaction next week.
The chart above shows that the price of ETH fell 4% from the daily peak of $3,544 recorded on Friday, June 21st, before opening trading around $3,419 on Monday, June 24th .
This reflects the general trend in the crypto market as investors appear unwilling to mount large positions, taking a neutral stance as they await the SEC’s next update on filings.
Ethereum Network Activity Increases 56% in 7 Days
In terms of price reaction, Ethereum markets did not react to the news surrounding the S1 filings on Friday. However, looking beyond the price charts, there has been a significant shift in usage of the Ethereum network, a move that signals that investors are preparing for major trading activity in the coming week.
The IntoTheBlock daily active addresses chart below tracks the total number of unique ETH wallets involved in confirmed transactions on a given trading day. This provides real-time insights into changes in the level of network activity and user participation.
As shown in the snapshot above, 515,610 ETH wallets carried out valid transactions a week ago, on June 17th. The network usage metric trended within the narrow 5% range until Friday, June 21, when news of the S-1 filing was released.
Since then, Ethereum has seen an impressive 56% increase in network activity, reaching 806,500 active ETH addresses as of the end of June 23.
When there is a significant increase in the number of addresses transacting on a network, it signals that a large number of investors are active and can react to or prepare for a major event. In essence, it is only a matter of time before this 56% increase in network activity is reflected in Ethereum’s price action.
Ethereum Price Prediction: Possible $4,000 Breakout?
Ethereum price consolidated in the $3,550 to $3,400 range over the weekend. Spikes in on-chain activity suggest that investors are preparing for a significant shift in market dynamics next week.
According to data from IntoTheBlock, Ethereum’s current price of $3,429.04 is at a critical juncture. The support level around $3,334, represented by the lower boundary of the Bollinger Bands, appears to be holding firm, while resistance approaches the $3,575 upper boundary band.
The market is nervous, awaiting updates on the SEC’s Ethereum spot ETFs. A positive update could trigger a bullish breakout, pushing Ethereum price towards the $4,000 mark.
With significant support from institutional investors like Blackrock and VanEck, the potential for a large price increase is high. As investors await the SEC’s decision, the network’s intensified activity – marked by a 56% increase in daily active addresses – suggests a willingness to capitalize on any positive developments.
Upcoming ETF news could be the catalyst needed for a breakout. As network activity continues to increase, indicating increased investor interest, there is a healthy chance that Ethereum could break new highs above $4,000 in the near term.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to do thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
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