Ethereum Price Eyes $4k this Week as Network Usage Spikes 56%

Ethereum price consolidated within the $3,550 – $3,400 narrow range over the weekend however, spikes in on-chain activity suggests investors are now bracing up for a major swing in market momentum in the week ahead.

Ethereum Price Volatility Heightens as ETF Launch Nears

ETH, the second-largest cryptocurrency, has been subject to intense market volatility over the past week. Prolonged delays surrounding the official launch of the newly-approved ETH spot ETFs has triggered anxiety, not only among Ethereum holders, but investors across the global crypto markets as well.

However, the latest filings reported by Bloomberg shows that the likes of Blackrock and VanEck have moved the needle in-terms of final adjustments to their Ethereum ETF applications.

On June 21, Bloomberg Analyst Eric Balchunas revealed that the institutional fund sponsors had submitted their final S-1 applications to the US Securities and Exchange Commission (SEC).

This brings the applicants one-step closer to the final approval before official listing date is announced, a moved that could spark massive markets reaction in the week ahead.

Ethereum price action ETHUSD after Blackrock VanECK Confirm S 1 Filings

The chart above shows that ETH price dipped 4% from the daily timeframe peak of $3,544 recorded on Friday, June 21, before opening trading around $3,419 at on Monday June 24.

This mirror the overall crypto market trend, as investors appear unwilling to mount large positions, instead taking on a neutral stance as the await the SEC next update on the filings.

Ethereum Network Activity Spikes 56% in 7 Days

In terms of price reaction, Ethereum markets did not react to the news surrounding the S1 filings on Friday. However, looking further than the price charts, there has been a significant shift in the Ethereum network usage, a move signaling that investors are bracing up for major trading activity in the week ahead.

IntoTheBlock’s Daily Active Addresses chart below, tracks the total number of unique ETH wallets involved in confirmed transactions on a given trading day. This provides real-time insights into changes in level of network activity and user-participation.

Ethereum price vs ETH Daily Active Addresses | IntoTheBlock

As depicted in the snapshot above, 515,610 ETH wallets engaged in valid transactions a week ago on June 17. The network usage metric trended within the narrow 5% range until Friday, June 21, when news of the S-1 filling broke.

Ethereum has since recorded a whopping 56% spike in network activity, as it reach 806,500 active ETH addresses at close of June 23.

When there’s a significant spike in the number of addresses conducting transactions on a network, it signals that large number of investors are active and may reacting to or bracing up for a major event. In essence, it’s only a matter of time before this 56% spike in network activity reflects on Ethereum price action.

Ethereum price forecast: Possible $4,000 Breakout?

Ethereum’s price has consolidated within the $3,550 to $3,400 range over the weekend. On-chain activity spikes suggest investors are preparing for a significant shift in market momentum in the coming week.

According to IntoTheBlock’s data, Ethereum’s current price of $3,429.04 sits at a critical juncture. The support level around $3,334, represented by the lower limit of the Bollinger Bands, appears to be holding firm, while resistance looms near $3,575, upper-limit band.

Ethereum Price Forecast | ETHUSD | TradingView

The market is on edge, awaiting updates on the Ethereum spot ETFs from the SEC. A positive update could trigger a bullish breakout, pushing Ethereum’s price towards the $4,000 mark.

With significant support from institutional investors like Blackrock and VanEck, the potential for a major price surge is high. As investors await the SEC’s decision, the network’s heightened activity—marked by a 56% increase in daily active addresses—suggests a readiness to capitalize on any positive developments.

The upcoming ETF news could be the catalyst needed for a breakout. As network activity continues to spike, indicating increased investor interest, there’s a healthy chance that Ethereum could break new highs above $4,000 in the near term.

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