The Ethereum price ranged between $3,550 and $3,400 over the weekend, but a surge in on-chain activity suggests investors are preparing for a significant shift in market momentum in the coming week.
As the ETF launch approaches, Ethereum price volatility intensifies
Over the past week, the second-largest cryptocurrency, ETH, has experienced significant market fluctuations. The long-awaited launch of approved ETH spot ETFs has not only caused anxiety among Ethereum holders, but also global cryptocurrency market investors.
However, the latest reports from Bloomberg indicate that companies such as Blackrock and VanEck have made final adjustments to their Ethereum ETF applications. On June 21st, Bloomberg analyst Eric Balchunas revealed that institutional fund sponsors had submitted the final S-1 application to the U.S. Securities and Exchange Commission (SEC).
This brings the applicants one step closer to final approval before the official listing date is announced, potentially triggering a strong market response in the coming week.
The price of ETH dropped 4% from a daily peak of $3,544 on Friday, June 21st to around $3,419 at the opening of trading on Monday, June 24th. This reflects the overall trend in the cryptocurrency market, as investors seem reluctant to make large positions and instead maintain a neutral stance, awaiting the next update from the SEC on the applications.
Ethereum network activity surges 56% in 7 days
In terms of price response, the Ethereum market did not react to the news about the S1 application on Friday. However, looking at the price chart, there has been a significant shift in Ethereum network usage, indicating that investors are preparing for significant trading activity in the coming week.
The IntoTheBlock daily active address chart below tracks the total number of unique ETH wallets with confirmed transactions on specific trading days. This provides real-time insight into changes in network activity levels and user participation.
As shown in the chart, on June 17th, 515,610 ETH wallets conducted valid transactions. The network usage indicator had been hovering within a narrow range of 5% until the news of the S-1 filing on Friday, June 21st.
From there, Ethereum’s network activity increased significantly by 56%, with active ETH addresses reaching 806,500 by the close of June 23rd.
When the number of addresses transacting on the network significantly increases, it indicates that a large number of investors are active and may be reacting to or preparing for significant events. Essentially, the 56% surge in network activity reflected in Ethereum’s price movement is only a matter of time.
Ethereum price forecast: Could break $4,000?
Over the weekend, Ethereum’s price ranged between $3,550 and $3,400. The surge in on-chain activity suggests that investors are preparing for a significant shift in market momentum in the coming week.
According to IntoTheBlock data, Ethereum’s current price is $3,429.04, at a critical juncture. The lower Bollinger Band representing support is holding strong at around $3,334, while resistance is near the upper limit of $3,575.
The market is tense, waiting for the latest news from the U.S. Securities and Exchange Commission on the Ethereum spot ETF. Positive news could trigger a bullish breakout, pushing the Ethereum price above the $4,000 mark.
With strong support from institutional investors like Blackrock and VanEck, the likelihood of a substantial price increase is high. As investors await the decision from the U.S. Securities and Exchange Commission, the increased network activity (a 56% increase in daily active addresses) indicates that the network is ready to capitalize on any positive developments.
The upcoming ETF news could be the catalyst needed for a breakthrough. With the continued surge in network activity, indicating increased investor interest, Ethereum is likely to break new highs above $4,000 in the short term.