Ethereum ($ETH) is attempting to recover above the $2,300 level on Friday after a week of declining network activity.
At the time of writing, Ether is trading at $2,238, down 1% in the past 24 hours.
However, with improved network activity, the coin could reverse the decline and skyrocket.
Ethereum active addresses continue to increase
Active addresses, which track the number of wallets sending and receiving tokens and interacting with smart contracts, have increased over the past week.
This latest development follows a steady decline in the previous week.
According to CryptoQuant, while this growth appears positive on the surface, it was not accompanied by a subsequent increase in the number of transactions, which measures the amount of user activity on a blockchain.
According to the data, the number of transactions dropped sharply by about 1 million over the past week before increasing slightly over the past few days.
The discrepancy between active addresses and transaction numbers suggests that the network remains quiet as the user base is not driving usage at this time.
The weakening of network activity can also be seen in Ethereum’s participation in proof-of-stake.
CryptoQuant data also shows that staking inflows have fallen by more than 80% over the past week, with total staking totals dropping by around 100,000. $ETH Up to 39.01 million people $ETH.
The reduction in staking comes amid community discussion regarding the potential reduction in staking rewards.
On-chain data also shows that Ethereum has been facing selling pressure in recent days due to increased exchange deposits and exchange-traded fund (ETF) outflows.
Ethereum price prediction: $ETH Focus on the 50-day EMA
of $ETHThe 4-hour chart of /USD remains bearish even though the overall crypto market has recovered from the recent decline.
On the 4 hour chart, $ETH It maintains a neutral to slightly capped tone as values stabilize between the major moving averages.
At the moment, Ethereum price is below its 50-day exponential moving average (EMA) at around $2,274, which provides nearby support.
Additionally, Ethereum remains below the 20-day EMA near $2,306 and the long-term 100-day EMA near $2,351, indicating that overhead supply is limiting any upside attempts.
Momentum mixed, traders undecided $ETHnext direction.
The Relative Strength Index (RSI) is hovering around 43 and the Stochastic Oscillator (Stoch) is sliding towards the oversold band, suggesting that bullish pressure is waning, but not yet a definitive bearish break.
If the bearish trend continues, the first support will be encountered at the 50-day EMA, followed by a more solid horizontal bottom around $2,211 and, if the sell-off deepens, $2,108.
A daily candlestick close below these levels could cause Ethereum to retest the deeper support levels at $1,909 and $1,741.
However, if the rally resumes, immediate resistance lies at the 20-day EMA near $2,306, followed by the 100-day EMA near $2,351 and a horizontal upper bound at about $2,389.
A decisive draw beyond these zones would ease the current cap, $ETH It spikes towards the higher resistance band at $2,746.
