Ethereum Nears Breakout Amid Bullish Network Trends
The Essentials at a Glance
Ethereum (ETH) is facing a potential trend reversal. Increased network activity, rising capital inflows into DeFi (Decentralized Finance), and declining exchange balances indicate growing interest. The $2,824 mark is emerging as a key resistance level. A breakout could trigger the next upward momentum.
Network Usage at Record Levels
Since the beginning of June, the use of the Ethereum network has increased significantly. The number of weekly active addresses reached a new all-time high of 17.4 million. Particularly notable: interactions on Layer-2 networks rose by 18.43%. These solutions improve Ethereum’s scalability and enable faster and cheaper transactions. Activity there was further amplified by a multiplier of 7.55 – a clear sign of increasing adoption.
DeFi Capital Inflows Support the Price
The Total Value Locked (TVL) – that is, the total capital deposited in Ethereum-based DeFi protocols – rose to $86.63 billion according to DeFiLlama. This corresponds to a daily increase of 1.28%. Despite general market fluctuations, this reflects stable confidence in decentralized financial applications. More capital in lending, staking, and liquidity protocols also means greater demand for Ethereum as a platform.
Declining Exchange Balances: Less Selling Pressure
Ethereum recently recorded a negative exchange netflow – meaning more ETH was withdrawn from exchanges than deposited. Balances on trading platforms fell by 1.59%. Users are increasingly moving their coins into personal wallets or staking contracts. This reduces the available supply on the market and, with rising demand, can lead to a so-called “supply squeeze” – a sudden price increase due to limited availability.
Traders Bet on Rising Prices – With Risks
Ethereum’s volatility dropped from 80.25% to 47.3% within two days. At the same time, the long/short ratio on Binance stood at 1.84 – around 65% of traders are betting on rising prices. However, this optimistic sentiment also carries risks: if too many market participants bet on the same scenario, a sudden shift in sentiment can lead to rapid price declines.
Chart Analysis: Inverse Head and Shoulders Pattern
The ETH price is currently moving between $2,383 and $2,824. A chart pattern known as the “inverse head and shoulders” is forming. This is considered a potential reversal signal. The price recently bounced upwards at $2,515.80 – a daily gain of 0.87%. A breakout above the $2,824 level would confirm the pattern and could pave the way toward $3,000. If the breakout fails, a sideways movement or pullback may follow.
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Our Assessment
Ethereum is currently showing many bullish signals: rising user numbers, growing DeFi volume, declining exchange balances, and an optimistic market sentiment. However, everything hinges on the resistance level at $2,824. Only a clear breakout above this level could trigger a sustained rally. Until then, the risk of a false breakout remains. Anyone invested or looking to invest should keep an eye on this level and closely monitor developments.
Sources
- DeFiLlama
- CryptoQuant
- IntoTheBlock
- TradingView
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | 2494.41 |
| 24h % | -0.72 % |
| 7d % | -0.18 % |
| 30d % | 6.74 % |
| 60d % | 52.62 % |
| 1y % | -32.11 % |
| Market Cap | $301,244,835,687.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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