After weeks of volatility and corrective pressure, Ethereum is looking to stabilize above the $3,200 level as the overall crypto market shows early signs of easing. Price trends remain cautious, but bulls are looking to protect this zone as a potential foundation for further recovery. Against this backdrop, on-chain data is beginning to paint a more constructive picture of Ethereum’s underlying fundamentals.
A recent CryptoOnchain analysis using CryptoQuant data revealed a notable acceleration in Ethereum network activity. The seven-day moving average of total transfers rose to approximately 870,000 transactions, a significant increase from the average of approximately 600,000 transactions recorded in the weeks ending December 29th. This nearly 45% increase in activity indicates a significant spike in network usage, rather than a temporary anomaly.
The increase in transfers signals increased engagement across the Ethereum ecosystem, including decentralized applications, DeFi protocols, and broader value transfers. Importantly, this increased activity is occurring amid stabilizing prices, which often signals strengthening fundamentals behind the scenes.
A sustained increase in on-chain usage could precede a period of increased market confidence as demand for ETH increases as a block space and utility asset.
Network activity establishes a higher usage baseline
The number of daily transfers has been consistently increasing and hovering around the 900,000 level. This persistence is an important signal suggesting that the initial spike was not caused by a single event or temporary speculation, but rather marks the formation of a higher structural baseline of network usage.
From an interpretive perspective, a sustained increase in transaction volume is one of the clearest indicators of network health and essential demand. This reflects growing engagement across the Ethereum ecosystem, including decentralized applications, DeFi protocols, NFT marketplaces, and simple transfers of value.
Unlike price-driven metrics, transaction activity is particularly valuable during the integration phase because it captures actual usage.
Historically, there have often been periods of rising and stable on-chain activity before positive price developments. The increase in the number of transactions means that there is a growing demand for ETH as a public asset, as it is needed to pay gas fees and interact with protocols.
As ETH is currently stabilizing around the $3,200 level, the sustainability of this increased activity will be critical. If this holds true, it could provide a solid foundation for Ethereum to move forward in its next direction.
Ethereum holds firm as bulls defend $3,200 zone
Ethereum’s weekly chart shows that the market is trying to stabilize after a volatile correction, with the price currently hovering just above the $3,200 level. This zone has become an important short-term pivot, acting as a battleground between buyers seeking continuity and sellers defending higher supply. After a sharp rebound from the $1,800-$2,000 area early in the cycle, ETH has entered a broad correction phase, reflecting a slowdown in momentum rather than a complete reversal of trend.
From a structural perspective, Ethereum remains above its long-term moving averages, with the 200-week moving average trending upwards, providing solid macro support well below the current price. However, the 50-week moving average and 100-week moving average are now converging near the $3,300-$3,500 area, consolidating this area as a key resistance cluster.
Trading activity has normalized after a previous expansion phase, indicating a decline in speculative intensity rather than active distribution. This is consistent with the market digesting past gains while waiting for new catalysts.
If the bulls manage to regain and maintain the $3,500 level, the structure will support a rally to further highs. Conversely, a $3,200 loss could lead to a deeper retracement of ETH towards the $2,800-$3,000 demand zone where buyers are likely to re-emerge.
Featured image from ChatGPT, chart from TradingView.com
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