Quick Summary:
- The number of active Ethereum addresses increased by 10% in 48 hours (April 20–22), rising from around 306,000 to over 336,000.
- Ethereum’s price broke past the $1,650 resistance level and surged above $1,790.
- ETH is now trading above both the 10-day and 20-day moving averages, indicating a shift in short-term momentum.
- Technical indicators are showing early signs of a bullish trend, although caution signs point to potential short-term exhaustion.
- Ethereum’s network fees remain relatively low, around $0.31, suggesting that on-chain activity is still relatively underutilized.
Ethereum Price Breaks Key Resistance Level
Ethereum has recently shown a notable improvement in both price action and network activity. Between April 20 and April 22, Ethereum’s number of active addresses spiked by nearly 10%. This increase, from approximately 306,000 active addresses to over 336,000, indicates a surge in network participation. According to CryptoQuant analyst Carmelo Alemán, this rise in active addresses points to growing investor interest and increasing activity on the Ethereum network.
A surge in active addresses can often be a precursor to a shift in market sentiment. While it is not a guarantee of upward movement, it is a strong signal that investors are becoming more engaged with the network. In this case, the spike in activity coincided with Ethereum’s price finally breaking above the $1,650 resistance level—a price point that had been holding the cryptocurrency back since mid-April. Following this breakout, Ethereum surged past $1,790, pushing away from the range it had been stuck in for the past few weeks.
Technical Indicators Show Bullish Momentum
The recent price action also aligns with positive technical indicators. Ethereum is now trading above both the 10-day and 20-day moving averages, which suggests that short-term bullish momentum is building. This is a significant development, as these moving averages are often used by traders to assess the short-term strength of an asset.
Additionally, the Relative Strength Index (RSI), which measures the speed and change of price movements, is currently just above the 50 mark. This indicates that Ethereum is in a neutral to mildly bullish condition—there is room for further upward movement without becoming overbought. Furthermore, the Moving Average Convergence Divergence (MACD) has shown early signs of a trend shift, turning slightly positive. The MACD is a trend-following momentum indicator, and this shift is an encouraging sign that Ethereum may be on the verge of gaining more momentum.
However, not all technical indicators are fully aligned with the bullish outlook. The Stochastic RSI, another momentum indicator, is already approaching the top of its range. When the Stochastic RSI is in this position, it can signal that the asset is nearing overbought territory, and without additional buying pressure, Ethereum could face some short-term exhaustion or a pullback. Traders will need to closely watch for further signs of strength or weakness in the market.
Low Transaction Fees Indicate Underutilized Network Activity
Another interesting aspect of Ethereum’s current performance is its relatively low transaction fees. As of the latest data from YCharts, Ethereum’s average transaction fee is hovering around $0.31. This is significantly lower than in previous bull markets, where fees often spiked as on-chain activity increased. Low fees suggest that, while more addresses are participating in the network, overall on-chain demand remains subdued. Essentially, the Ethereum network is still affordable to use, but it has not yet experienced the type of demand that leads to higher transaction costs.
This presents an intriguing situation. While rising active addresses and increased price action suggest a strengthening market, the low fees indicate that there could still be room for further growth in on-chain activity. If more users and developers begin utilizing the network, transaction fees could rise, which might further fuel the bullish sentiment.
What’s Next for Ethereum?
Looking ahead, the next major price target for Ethereum is the $2,000 mark. With ETH now holding above the previous resistance zone and showing strength on the charts, it is possible that the cryptocurrency could continue its upward trajectory if the current bullish momentum persists. However, traders will need to remain cautious as the Stochastic RSI suggests that the market could be nearing short-term exhaustion. It will be important to watch whether additional buyers step in to sustain the bullish trend.
Overall, Ethereum’s recent price action, coupled with increased network activity and positive technical indicators, indicates that the cryptocurrency may be entering a new phase of growth. If momentum continues and Ethereum surpasses the $2,000 threshold, it could signal a more significant breakout, potentially attracting even more attention from both investors and developers alike.