Ethereum price is up today as an uptick in network activity and investors’ expectation of a spot ETF approval in 2024 raise interest in ETH.
In the weeks leading up to the spot Bitcoin ETF approval, Ether price secured a year-to-date high above $2,700 but sold off alongside the wider market after the ETF approval. This week, Ether price aims to kick-start a recovery that is fueled by increasing network activity
Let’s look at the factors driving Ether’s price.
Significant rise in network activity
Ethereum, the largest layer 1 blockchain by total value locked, is witnessing a significant rise in network activity.
Data from market intelligence firm Santiment shows 101,000 new ETH addresses daily and 484,000 unique addresses interacting with the blockchain and the network activity at approximately 30% more than it was 90 days ago. This suggests more users are transacting on the network, deploying smart contracts and building decentralized applications (DApps).
“#Ethereum has returned to a $2,345 value for the first time since its fall began on January 22nd. The network is encouragingly rising in active addresses and network growth. The increased utility is a primary pillar to justify an increasing $ETH market cap”
Growing optimism for a spot Ethereum ETF approval
After 11 spot Bitcoin ETFs were approved by the U.S. Securities and Exchange Commission (SEC) on Jan. 10, the broader crypto market is now wondering whether a spot Ethereum ETF will come next.
Traders expect a spot ETH ETF approval also anticipater Ether’s price to rise significantly in the days leading up to and after the approval on May 23.
Ether trades above a strong support zone
From a technical perspective, ETH is sitting on a strong support zone compared to the resistance it faces in its recovery path. Data from IntoTheBlock shows that the immediate support around $2,250 is within the $2,230 and $2,297 price range, where roughly 3.38 million ETH were previously bought by about 2.95 million addresses
The ETH/USD daily chart below shows that the price has been oscillating around this level since Dec. 5, 2023, suggesting that the level is important for buyers and sellers.
If the bulls manage to hold above this level, they could push the price above the 50-day exponential moving average at $2,306, with a key level to watch on the upside being $2,500.
On the other hand, sellers could pull the price below this level with the 100-day EMA at $2,190, providing the first major support. More defense lines could emerge from the 200-day EMa at $2,039 and the $2,000 demand level.