$ETHthe native cryptocurrency of smart contract giant Ethereum, posted a slight loss of 0.54% during the opening bell of US market hours on Thursday. The decline has been shallow due to geopolitical instability and the weakness of the US-Iran ceasefire. Despite sentiment pressure on Ethereum prices, on-chain data has recorded a significant spike in Wrapped Ethereum (WETH) activity, generating community speculation regarding potential institutional inflows and unannounced protocol integrations. Will prices continue to recover?
WETH adoption surges despite weak market sentiment
On April 9th, the crypto market witnessed low volatility trading in most major digital currencies. This uncertainty may be related to geopolitical instability, as the recently announced two-week ceasefire between the United States, Iran, and Israel is rapidly fraying.
The temporary ceasefire initially boosted sentiment in global markets, but the recent Israeli attack on Lebanon, disputes between the parties over the status of the Strait of Hormuz and conflicting interpretations of nuclear enrichment rights have once again put markets in a risk-off phase.
Despite the market FUD, on Wednesday, Santiment’s on-chain data captured an alarming spike in wrapped Ethereum activity. Just 32,058 new $WETH wallets were created, more than 16 times the normal daily average, and active wallets increased to 46,650, more than 3 times the normal. Both indicators recorded their highest readings this year.
This spike in new addresses and genuine wallet usage indicates increased adoption and capital inflows into the Ethereum ecosystem. Increased participation in a network often results in $ETHusers will require native tokens for gas fees, staking, and DeFi interactions, which could support upward pressure on prices amid a broader market recovery.
Ethereum price cools ahead of upcoming breakout
In the past 48 hours, Ethereum price plummeted from $2,272 to $2,166, marking a 3.5% loss. This pullback emerged from a multi-month resistance trendline on the daily time frame chart, suggesting a new bearish reversal in price.
According to historical data, the coin price experienced renewed selling pressure at the resistance level from early October 2025 to mid-January 2026, resulting in a correction of approximately 45% to 48%.
However, Ethereum price could witness solid support at $1,980, down just 8.3% from the new support trend line. If this support holds, Contrast could extend its ongoing consolidation near the psychological mark of $2,000.
The momentum indicator RSI of 54% indicates neutral to slightly bullish sentiment among market participants.
Ethereum price is poised for a decisive breakout in the short term, as there are no financial assets left in a particular trend. A potential breakout of the overhead resistance would push the asset to the next immediate resistance at $2,375 and then $2,630.
Conversely, note that a break below the aforementioned support will accelerate selling pressure and prolong the correction to the $1,500 mark.
