Source: Cointelegraph.com NewsKey takeaways:<\/p>\n
Ethereum is forming a bull flag on the daily chart, with a potential breakout to $4,000.
\nIf Ethereum\u2019s network activity and total value locked continue to grow, ETH price may see further gains.<\/p>\n
Ether\u2019s price printed a \u201cbull flag\u201d on the daily chart, a technical chart formation associated with strong upward momentum. Could a strengthening technical setup and increasing transaction fees signal the continuation of ETH\u2019s rally toward $4,000? Source: Cointelegraph.com NewsKey takeaways: Ethereum is forming a bull flag on the daily chart, with a potential breakout to $4,000. If Ethereum\u2019s network activity and total value locked continue to… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129884"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129884"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129884\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129884"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nEthereum transaction fees rising is bullish
\nMarketwide recovery, fueled by Bitcoin\u2019s rise to new all-time highs and improving macroeconomic conditions, saw Ether\u2019s (ETH) price rise by nearly 56% to an eight-week high of $2,734 on May 23, from a low of $1,750 on May 6.\u00a0
\nThis strength in price is reflected in onchain activity, with Ethereum\u2019s daily transaction count rising by 37% over the last 30 days. These levels were last seen in January 2024, when the hype around the approval of US-based spot Bitcoin ETFs pushed ETH price above $4,000 for the first time since December 2021.
\nEthereum daily transaction count. Source: CryptoQuantEthereum’s daily average transaction fees also skyrocketed, reaching a 90-day high of 0.0005 ETH ($1.33) on May 22.\u00a0
\nEthereum: Fee per transaction. Source: Source: CryptoQuantHigh transaction count and fees suggest that more users are interacting with the network, whether for DeFi, NFTs, or other DApps. It suggests high network activity, often correlating with increased interest and market confidence.\u00a0
\nRelated: Ethereum holders back in profit as ETH price enters ‘crucial area’ for $3K breakout
\nHistorically, Ether\u2019s price has surged during high-usage periods. For example, during the 2021 DeFi boom, fees spiked to as high as 0.015 ETH due to high demand.\u00a0
\nAs such, high utilization periods with high fees indicate growth in network activity or bullish sentiment, as more ETH is needed for gas, pushing its price upward.
\nIncreasing TVL supports ETH price bulls
\nThe increase in Ethereum\u2019s network activity is also evident when analyzing the total value locked (TVL) on the network\u2019s smart contracts.\u00a0
\nEthereum\u2019s TVL has risen to $65.3 billion on May 23 from $45.26 billion on April 22, an increase of over 44% in almost 30 days.
\nEthereum TVL and transaction count. Source: DefiLlamaPositive signs include a 51% increase in deposits on Pendle, a tokenization protocol, and 48% growth on Ether.fi and EingenLayer.
\nEthereum remains the undisputed leader by TVL, with a market dominance of 54%. In comparison, Solana\u2019s dominance stands at 8%, and BNB Chain commands only 5% dominance in TVL among layer-1 chains.
\nTotal value locked market share (%). Source: DefiLlamaIn addition, US-listed spot Ether ETFs saw a total of $249 million in net inflows between May 13 and May 22, adding to demand-side tailwinds.
\nSpot Ethereum ETF flows data. Source: SoSoValue
\nEther\u2019s bull flag hints at $4,000
\nETH price has formed a bull fag chart pattern on the daily chart, as shown below.\u00a0\u00a0
\nA bull flag pattern is a bullish setup that forms after the price consolidates inside a down-sloping range following a sharp price rise.
\nETH\/USD daily chart. Source: Cointelegraph\/TradingViewThe flag resolved after the price broke above the upper trendline at $2,550 and could now rise by as much as the previous uptrend\u2019s height. This puts the upper target for ETH price just below $4,000, up 56% from the current price.
\nCrypto analyst Michael van de Poppe said that the ETH price needs to hold the $2,400 support to increase the chances of moving toward $3,500 and beyond.
\nSource: Michael van de PoppeAs Cointelegraph reported, Ether\u2019s uptrend is likely to continue toward $3,600 in May if key support levels hold.
\nThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"