Ethereum is back in focus, but not because of price gains. The second-largest cryptocurrency by market value has been stuck in a quiet phase. As of now, Ethereum trades at about $2,423, marking a 0.9% daily drop. It is still over 50% below its all-time high of $4,878.
While price watchers might feel disappointed, Ethereum’s network activity is telling a different story. According to analysts, transactions on Ethereum recently jumped to 1,750,940 in a single day. This is the third-highest daily transaction count in the network’s history.
The analyst points out that this increase reflects strong underlying demand. The Transaction Count metric tracks all activity on the network is increasing. This includes ETH transfers, smart contract actions, and interactions with decentralized apps and DeFi platforms.
This surge breaks a months-long trend of falling activity. The last time the network saw higher transactions was in January, when it recorded 1.96 million.
Ethereum’s Rising Activity and Derivatives Dynamics Suggest Quiet Bullish Momentum
Several reasons might explain this spike. The analyst stated that there are many more people trading and performing arbitrage on Layer 2 networks. Such networks assist Ethereum in conducting more transactions at a lower cost.
Although the price is going sideways, the network activity is evidence that certain investors are taking entry positions silently. Others may be returning to decentralised finance or experimenting with new apps. Even if the price has not reacted yet, the network’s health looks solid.
Another analyst focuses on the derivatives market. He notes that the cryptocurrency’s funding rates on Binance have become positive and no longer negative. This implies that an increasing number of traders are taking bets on its future higher price via leveraging.
Another point, which the analyst emphasises, is that Ethereum retested one of the most important short-squeeze levels. Short sellers of Ethereum were obliged to buy back at increased prices, introducing an abrupt upward change in price.
A Divergence Between Exchange Inflows And Ethereum Network Strength
In the meantime, exchange flows are one of the signs of caution. More than 177,000 ETH have already been deposited on Binance within three days. Large deposits moving into the exchanges may mark future selling pressure.
Since the start of this year, the price of Ethereum has not surpassed $2880. Others consider this an indication of hesitation in the market. But traders are awaiting a definite breakout to make wider decisions.
The strong activity in the ETH network contrasts well with its modest price performance. However, it implies that developers and users keep on creating and interrelating via the network. Ethereum continues to dominate the DeFi and smart contract markets, and its fundamentals are holding well.
Market watchers are split on what will come next. Some believe the rising transactions and funding rate shifts could lead to a new rally. Others worry about the risks tied to over-leveraged positions and potential sell-offs from large holders.
Altcoin Market Awaits Key Signals for a True Bull Run
Whether a big move is around the corner or not, ETH’s strong network usage signals that the ecosystem is far from dead. Meanwhile, a recent chart published by a leading crypto analyst indicates that the altcoin market has not yet hit a real bull run.
The chart showed the total market cap of altcoins within the range of two weeks. According to the analyst, there are still some cues to watch before altcoins can initiate a huge rally.
According to his analysis, many traders have been optimistic already. However, the actual move has not begun. The chart has such important indicators as RSI and Whale Money Flow that indicate how momentum is low and does not reach critical numbers.
This implies that larger investors may still be awaiting better assurance before accumulating. Currently, ETH, XRP, and Dogecoin altcoins are mixed in terms of price action. Therefore, most traders are still looking for a breakout.
His analysis emphasises patience and warns traders not to be too quick to enter positions. The general trend on the chart is that there could be good returns, but the market will take some time before the actual upturn gains momentum.
