Ethereum activity returns: Active addresses spike 89K as ETH tests $2,330 support

Ethereum’s [ETH] network activity seems to be returning, with active addresses spiking sharply over the last 24 hours.

At the same time, the percentage of the total supply in profit rose to 63%, affirming the network’s current bullish sentiment, as most holders are choosing to hold rather than to short.

What is more intriguing is that both developments come at a key confluencing zone between an ascending trendline and 200-EMA support at $2.33K. The network’s price action is already positively reacting to the demand zone, as the token is now trading at $2,429.

Could the positive sentiment initiate an ETH recovery and push it above the current consolidation range?

Network activity signals a renewed engagement

According to the most recent network activity data, Ethereum’s number of active addresses spiked by 89K to 389K over the past 24 hours. The substantial increase suggests that on-chain participation is picking up. 

For investors, if the rise persists, it could indicate stronger demand for network transactions and applications. However, active addresses do not necessarily represent unique users or direct buying of ETH.

It is also worth noting that these datasets can also rise during periods of increased transfers, trading, or speculative activity. 

More ETH supply returns to profits

The percentage of ETH supply in profit has climbed to 63%, suggesting that a larger share of circulating tokens is trading above its acquisition price.

According to the recent profitability data, on-chain volume in profits hit $1.70 million on the 18th of October, a significant figure to keep the bullish momentum going. This improvement may support sentiment by reducing the proportion of holders facing unrealized losses.

Going hand in hand with the surging network activity and profitability, Ethereum’s Funding Rate has also hit a new weekly high at 0.007. This suggests that investors are anticipating further bullish gains.

This could be attributed to Buterin’s push for AI security, which has seen more big institutions flocking to the network.

Can ETH Defend the $2,330 Support?

The zone of confluence at the $2,330 zone will be key to the token price action in the short run. With the token now reclaiming the 200-day support, bulls are more likely to extend their dominance.

If buyers defend this support, ETH could attempt to recover from its current consolidation range and probably target $2.8K. A decisive breakout above that boundary would strengthen the recovery case.

However, a sustained move below $2,330 would weaken the setup and expose ETH to further downside. All in all, as it stands, the rising network activity and improved holder profitability offer encouraging signals.

Final Summary

• Ethereum active addresses sharply spike, signaling renewed network participation as ETH tests a key technical support zone.
• The significant surge in the transaction in profit and network funding rates points to further gains.