The Ethereum network has experienced a surge in its activity amidst the rally of ETH across the board, as the metrics show that it rose over 50% since the start of October.
Ether is currently exchanging hands at around $4,550 despite the pullback witnessed from the all-time highs recently hit at $4,868, and now it’s consolidating below the 50-period simple moving average.
On-Chain Activity Favors The Buyers
On-chain metrics from Santiment say that Ethereum’s latest address activity was up about 48% since the number of unique ETH addresses bottomed out at the end of September. That’s why the rally is fueled by the network’s increase, which usually propels prices higher than ETH is experiencing.
📈 #Ethereum‘s latest address activity is up about 48% since the number of unique $ETH addresses bottomed out in late September. Volume, social, volume, network profit/loss, and address activity are all covered in @santimentfeed‘s latest insight. 👇 https://t.co/jAfjizTdPy pic.twitter.com/Es0DWEWa6a
— Santiment (@santimentfeed) November 12, 2021
Also, non-fungible tokens (NFTs) and decentralized applications (dApps) are the hypes that keep the fire alive on the Ethereum network. That’s something that could be clearly spotted in the soaring gas fees in ETH transactions.
That said, the network’s growth confirms the bullish scenario in the current ETH’s price action, which is now trying to gather momentum to continue extending higher.
Even so, the Ethereum network’s drop didn’t hit ETH’s prices significantly during October, with some shy pullbacks seen during these moves according to the metrics.
Bull-Run’s Steam Coming To An End In The Short Term?
Meanwhile, the technical outlook for Ether shows that the price seeks to break below $4,400 and looks forward to extending the selling wave towards the 200-period simple moving average at the H4 chart, which would invalidate the overall bullish structure of the cryptocurrency, thus slowing down the bull run.
However, as ETH remains on a solid foot and printing new highs solidly across the board, once it cracks above $4,850 with a big candlestick, the price could take a bid to consolidate above the critical handle of $5,000.
That scenario is likely to happen because on-chain metrics suggest a high activity of buyers around the $4,500 level, which could halt any short-term selling pressure on the second’s largest crypto by market cap. In the meantime, the RSI indicator hovers within the negative territory, confirming the ongoing pullback, and that could extend further in the short term.