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Ethereum forms a bull flag within the each day table with a possible outbreak of 4,000 US dollars.
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If the network activity of Ethereum and the whole value continues to extend, the ETH price can record further profits.
The price of ether printed a “bull flag” within the Daily chart, a technical diagram formation that’s related to strong upward dynamics. Could a strengthening of the technical establishment and increasing transaction fees to signal the continuation of the ETH rally for $ 4,000?
Ethereum transaction fees rise bullish
The market-wide recovery, which was heated by the rise of Bitcoin to recent all-time highs and the advance of the macroeconomic conditions, increased the worth of Ether (Eth) on May 23 by almost 56% to an eight-week high of $ 2 $ 1,750 on May sixth.
This price strength is reflected in Onchain activity, with the each day variety of transaction from Ethereum increasing by 37% prior to now 30 days. These values ​​were last seen in January 2024 when the hype for the approval of the Spot Bitcoin ETFs based within the USA increased the ETH price over $ 4,000 for the primary time since December 2021.
Ethereum Daily Transaction Count. Source: Cryptoquant
The each day average transaction fees from Ethereum also climbed and reached a 90-day high of 0.0005 ETH (USD 1.33) on May twenty second.
High transaction number and costs indicate that more users interact with the network, be it for Defi, NFTS or other dapps. It indicates high network activity that always correlates with increasing interest and market trust.
Historically, the worth of ether has increased during wedding hours. For example, resulting from the high demand, the fees rose to as much as 0.015 ETH throughout the Defi boom from 2021.
Therefore, high usage periods with high fees show how growth in network activity or the bullish mood occurs, since more ETH is required for gas, which presses the worth upwards.
Increasing the TVL supports ETH price bulls
The increase within the network activity of Ethereum will also be seen within the evaluation of the general value (Speced (TVL) within the intelligent contracts of the network.
The TVL from Ethereum rose on May 23 from $ 45.26 billion to April twenty second to $ 65.3 billion, a rise of over 44% in almost 30 days.
Positive signs include a rise in pendulum, a tokenization protocol and growth of 48% to ether.fi and ingresslayer.
With a market dominance of 54%, Ethereum stays the undisputed leader of TVL. In comparison, the dominance of Solana is 8% and the BNB chain is barely 5% dominance within the TVL under shift 1 chains.
In addition, the US Spot ether ETFs recorded a complete of $ 249 million between 13 and 22 and 22.
Ether's Bull Flag indicates at 4,000 US dollars
The ETH price has formed a Bull FAG Chart pattern within the each day diagram, as shown below.
A bull-flag pattern is a bullish setup that forms in a down sloping area after a robust price increase.
The flag was dissolved after the worth has been deleted over the upper trend line of $ 2,550, and will now increase as much as the quantity of the previous upward trend. This increases the upper goal of the ETH price slightly below 4,000 US dollars, which corresponds to the present price.
The crypto analyst Michael van de Poppe said that the ETH Prize has to carry the support of two,400 US dollars in an effort to increase the likelihood that they may move towards 3,500 US dollars and beyond.
As CoinTelegraph reported, Ether's upward trend in May should proceed to $ 3,600 in May if an important support levels apply.
This article doesn’t contain investment advice or recommendations. Every investment and trade movement is the danger, and readers should perform their very own research results in the event that they make a choice.
