Ethereum Price Forecast: Buying momentum returns amid steady network growth

Ethereum price today: $3,190

• Ethereum exchanges have recorded net outflows of more than 100K ETH since the beginning of the week.
• Active addresses and transaction counts have soared despite subdued price action.
• ETH bounced off the 20-day EMA and is rising to retest the resistance near the 100-day EMA.

Ethereum (ETH) has been seeing mild renewed buying activity since the beginning of the week. After recording steady inflows throughout last week, ETH Exchange Netflow has flipped to over 100K ETH in outflows this week.

Exchange Netflows measures the difference between coins flowing in and out of crypto exchanges. The increase in outflows indicates higher buying pressure among investors trading ETH via spot exchanges.

The move isn't limited to the spot market, as the Taker Buy Sell Ratio has also risen above 1. The metric measures the ratio of buy volume to sell volume for traders using market orders in perpetual swap trades.

The rise suggests a return of bullish sentiment in the derivatives market. However, the underlying market structure remains cautious as Ethereum's open interest has declined slightly from around 13M ETH last week to 12.68M ETH on Tuesday, according to Coinglass data.

Network activity booms amid weak prices

Ethereum's network activity continues to surge higher despite prices remaining subdued.

Active addresses have been rising since mid-December, surpassing their August levels when ETH hit a new all-time high. A similar trend is also visible in Ethereum's total transaction count, which has flipped its August levels to set a record high.

The move follows the Fusaka upgrade, which increased the block gas limit and the number of blobs per block, boosting throughput and making the network more attractive to users.

Historically, network activity often follows price action. However, with active addresses and transaction count showing resilience despite weak prices, ETH could see robust growth when the general crypto market sentiment improves.

Ethereum Price Forecast: ETH bounces off 20-day EMA

Ethereum saw $25.2 million in futures liquidations over the past 24 hours, led by $18.9 million in short liquidations.

ETH found support near the 20-day Exponential Moving Average (EMA) and is rising toward the 100-day EMA, which stood as a key resistance during last week's price rise. A rise above the 100-day EMA could push ETH to test the 23.6% Fibonacci Retracement level near $3,480.

ETH/USDT daily chart

On the downside, ETH could hold the $2,890 support if it declines below the 20-day EMA.

The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are above their neutral levels and trending upward, indicating a rising bullish momentum.