Ethereum On Fire: User Growth Sparks Massive Activity Spike
Ethereum’s on-chain activity has jumped sharply, driven by a wave of first-time users and heavier transaction flow across the network. According to Glassnode, new activity retention roughly doubled this month — rising from about 4 million to around 8 million addresses — a move that points to a fresh cohort of wallets interacting with EthereumThis reflects a notable influx of new wallets engaging with the Ethereum network, rather than activity being… pic.twitter.com/h8Zw7hXOSX There were also those who cited optimism based on improvements to on-chain fundamentals. For instance, LVRG Research reported that the increasing number of transactions and staking activities encouraged a positive network. Some traders argue the compression in price action could precede a breakout. Ether traded near a two-month high of $3,400 on Wednesday and was around $3,300 in early trading on Friday, reflecting the tug of war between renewed demand and persistent caution. Despite the stronger metrics, technical hurdles remain. Reports and recent analysis suggest the market is in a repair phase, not a confirmed uptrend. Overhead supply still constrains sustained advances, and many market participants want to see ETH reclaim key long-term resistance levels, such as the 200-day EMA, before committing large-scale capital. That explains why short-term traders operate inside a defined range while longer-term players hold back.Analyst Views & Price Movement
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What This Means For Traders And Investors
Network health has improved materially — more users, more transactions, and higher staking — but price action has not yet matched those gains.
Based on the data presented, cautious optimism is reasonable. Traders may find chance to trade the range, while investors looking for conviction should wait for cleaner technical confirmation before assuming a sustained rally.
Featured image from Blockzeit/EthBurn, chart from TradingView
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