Ethereum is attempting to stabilize above the $3,200 level as the broader cryptocurrency market shows early signs of relief after weeks of volatility and corrective pressure. Price action remains cautious, but bulls are seeking to defend the area as a potential base for further recovery. Against this backdrop, on-chain data is starting to paint a more constructive picture of Ethereum’s fundamentals.
A recent CryptoOnchain analysis using CryptoQuant data highlights a notable acceleration in Ethereum network activity. The seven-day rolling average of total transmissions has increased to about 870,000. This is a sharp increase from the average of around 600,000 cases recorded in the weeks to December 29. This nearly 45% increase in activity suggests a meaningful spike in network usage rather than a short-term anomaly.
Increased transfers mean increased participation across the Ethereum ecosystem, including decentralized applications, DeFi protocols, and broader value transfers. Importantly, this expansion in activity is occurring while prices are consolidating. This is a dynamic that often indicates strengthening fundamentals beneath the surface.
If this continues, increased on-chain usage could occur before market confidence improves as demand for block space and ETH, a utility asset, increases.
Network activity sets higher usage standards.
The number of daily transfers continues to increase, hovering around 900,000. This persistence is an important signal as it indicates that the initial surge was not caused by a single event or temporary speculation, but rather the formation of a higher structural baseline for network usage.
From an interpretation perspective, a sustained increase in transaction volume is one of the clearest indicators of network health and organic demand. This reflects growing participation across the Ethereum ecosystem, including decentralized applications, DeFi protocols, NFT marketplaces, and simple value transfers.
Unlike price-driven indicators, trading activity captures actual usage and is therefore particularly useful during the consolidation phase.
Historically, periods of increased and stable on-chain activity have often preceded positive price growth. Increasing transaction numbers mean stronger demand for ETH as a utility asset due to the need to pay gas fees and interact with the protocol.
With ETH currently consolidating towards the $3,200 level, the continuation of this increased activity will be very important. If it persists, it could provide a solid fundamental foundation for Ethereum’s next move to greater heights.
Ethereum Consolidates as Bulls Defend $3,200 Zone.
Ethereum’s weekly chart shows the market attempting to stabilize after a volatile correction, with the price currently holding just above the $3,200 level. The zone has become a key near-term pivot, serving as a battleground between buyers seeking continuity and sellers defending higher supply. After a sharp bounce in the $1,800-$2,000 region early in the cycle, ETH entered a broad consolidation phase, reflecting cooling momentum rather than a complete trend reversal.
From a structural perspective, Ethereum is holding above its long-term moving average and its 200-share MA is trending upward, providing a solid macro support base well below the current price. However, the 50-week moving average and the 100-week moving average are now converging near the $3,300-$3,500 area, strengthening this area as an important resistance cluster.
Trading activity has normalized since the previous expansion phase, indicating a decline in speculative intensity rather than aggressive distribution. This is consistent with the market digesting previous gains while waiting for a new catalyst.
If the bulls recover and hold above the $3,500 level, the structure will likely favor a new push towards higher highs. Conversely, a loss of $3,200 would expose ETH to a deeper retracement towards the $2,800-$3,000 demand area, where buyers are likely to reemerge.
Featured image from ChatGPT, chart from TradingView.com
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