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Ethereum prices traded in a narrow range of $3,550 – $3,400 last weekend, however, the surge in on-chain activity indicates that investors are now preparing for significant changes in market momentum in the coming week.
With the ETF launch approaching, Ethereum price volatility intensified
Over the past week, the second-largest cryptocurrency ETH has experienced significant market volatility. The long-awaited launch of the newly approved ETH spot ETF has not only sparked anxiety among Ethereum holders, but also global cryptocurrency market investors.
However, the latest reports from Bloomberg indicate that companies such as Blackrock and VanEck have made final adjustments to their Ethereum ETF applications.
On June 21st, Bloomberg analyst Eric Balchunas revealed that institutional fund initiators have submitted the final S-1 application to the U.S. Securities and Exchange Commission (SEC).
This brings the applicants one step closer to final approval before the official listing date is announced, which may trigger a strong market reaction in the coming week.
The image above shows that the price of ETH fell by 4% from the daily peak of $3,544 on Friday, June 21, and then traded at around $3,419 on Monday, June 24.
This reflects the overall trend in the cryptocurrency market, as investors seem unwilling to build up large positions and instead remain neutral, awaiting the next update from the U.S. Securities and Exchange Commission on the filing.
Ethereum network activity surged 56% in 7 days
In terms of price response, the Ethereum market did not react to the news about the S1 application on Friday. However, looking at the price chart, there has been a significant shift in Ethereum network usage, indicating that investors are preparing for significant trading activity in the coming week.
The chart below from IntoTheBlock tracks the total unique ETH wallets with confirmed transactions on specific trading days. This provides real-time insights into changes in network activity levels and user engagement.
As shown in the chart above, on June 17, a week ago, there were 515,610 ETH wallets with valid transactions. Prior to the news of the S-1 filing on Friday, June 21, the network usage metric had been hovering within a narrow range of 5%.
Ethereum’s network activity has since increased significantly by 56%, with the active ETH addresses reaching 806,500 by the close of June 23.
When the number of addresses trading on the network increases significantly, it indicates that a large number of investors are active and may be reacting or preparing for significant events. Essentially, the 56% surge in network activity reflected in Ethereum’s price movement is only a matter of time.
Ethereum Price Prediction: Potential Breakthrough Above $4,000?
Last weekend, Ethereum’s price traded in a range of $3,550 to $3,400. The surge in on-chain activity indicates that investors are preparing for a significant change in market momentum in the coming week.
According to IntoTheBlock’s data, Ethereum’s current price is $3,429.04, at a critical moment. The lower limit of the Bollinger Band representing support is around $3,334, while the resistance is near the upper limit of $3,575.
The market is tense, awaiting the latest news from the U.S. Securities and Exchange Commission on the release of the Ethereum spot ETF. Positive news may trigger a bullish breakthrough, pushing Ethereum’s price up to the $4,000 mark.
With strong support from institutional investors such as Blackrock and VanEck, the likelihood of a significant price increase is high. As investors await the decision of the U.S. Securities and Exchange Commission, the increase in network activity (a 56% increase in daily active addresses) suggests that the network is ready to take advantage of any positive developments.
The upcoming ETF news may be the catalyst needed for a breakthrough. With network activity continuing to soar, indicating increased investor interest, Ethereum is likely to break above $4,000 in the short term.
