- Ethereum price has re-entered the ascending parallel channel with prospects for more gains.
- ETH could climb 5% to the $2,500 level with technical indicators and on-chain metrics showing support.
- A break and close below the 100-day SMA at $2,172 would invalidate the bullish thesis.
Ethereum (ETH) price bullish outlook continues to abound despite the recent setback as bulls show fortitude. With technicals indicators and on-chain metrics supporting the intermediate trend, the upside potential for the second largest cryptocurrency by market capitalization continues to grow.
Ethereum network sees rising active addresses and network growth
Santiment analysts show that network growth and a surge in daily active addresses continue to steer Ethereum price. The move has seen ETH reclaim above the $2,345 level, last tested during the January 22 crash. The analysts attribute this to increased utility, saying, “It is the pillar to justify an increasing ETH market cap.”
Meanwhile, Ethereum price has reclaimed back into the fold of the ascending parallel channel after overcoming resistance due to the 500-day Simple Moving Average (SMA) at $2,332. Increased buying pressure above this level could see ETH overcome the immediate resistance at $2,388, which is critical as it prevented Ethereum price from extending north across December and through the first week of January.
In a highly bullish case, Ethereum price could extend the climb to test the midline of the channel at $2,600 or extrapolate the gains to reclaim the range high at $2,717, levels last tested around mid-January.
The highly ambitious case could see Ethereum price tag the $2,800 psychological level, nearly 20% above current levels.
ETH/USDT 1-day chart
On-chain metrics support Ethereum price bullish outlook
Over the last three months ETH daily active addresses have recorded a steady rise, climbing from 404,000 to 469,000 since October. This represents a 16% rise, with Santiment analysts indicating 101,000 new ETH addresses being generated per day. The daily active addresses metric shows the number of unique addresses involved in ETH addresses per day, and therefore fresh crowd interaction.
Also, the network growth metric is up 18% since October, moving from 72,300 to 85,600. According to Santiment analysts, there have been 484,000 unique addresses interacting on ETH network per day. This metric illustrates user adoption over time, showing whether the project is gaining or losing traction.
%20%5B01.24.47,%2031%20Jan,%202024%5D-638422534255855782.png)
ETH Santiment: Daily active addresses, Network growth
On the other hand, if profit takers cash in on the 9% gains made since Ether pivoted around the 100-day SMA at $2,172, Ethereum price could drop towards the demand zone that now acts as a bullish breaker between $2,059 and $2,118. A break and close below its midline at $2,091 would confirm the continuation of the fall, potentially going as low as the support confluence between the 200-day SMA and the horizontal lime at $1,935. Losing this buyer congestion level would invalidate the bullish thesis.
