Ethereum (ETH) Price Prediction: ETH Tests Key Level of $2500 After Inverted Hammer Candle

Gate news, Ethereum (ETH) fell 1% in early trading on Friday due to cautious market activity despite low realized PNL and stable open interest. Nevertheless, Ethereum's network usage has rebounded, driven by an increase in active Addresses, with the number of transactions rising from 1.23 million on Wednesday to 1.75 million.

Network activity increases, Ethereum price maintains range fluctuations

In the past few days, Ethereum's trading activity in its derivatives and spot markets has been quite neutral, indicating that cautious sentiment remains prevalent in the market.

The on-chain realized profit/loss and average coin age metrics indicate that investors have reduced trading activity, with daily losses and profits still below the $100 million mark, and the distribution/accumulation has remained stable over the past few days.

According to CryptoQuant data, the balance of whales holding between 10,000 and 100,000 ETH has remained stable since the beginning of this week, with only an increase of 7,000 ETH. Meanwhile, exchange reserves have slightly risen, indicating a slight increase in selling pressure this week.

The derivatives market is also showing a similar situation, with open interest (OI) failing to break through the 13 million ETH mark since its drop on Saturday. Open interest refers to the total value of outstanding or unsettled contracts in the derivatives market.

Although these indicators reflect a cautious market sentiment, slightly leaning downwards, the network usage of Ether and institutional sentiment are slightly tilted towards bullish.

The active addresses of Ethereum have increased again, breaking the downward trend that started on June 13, although the price has remained relatively stable.

These addresses have also been active in trading, as the number of Ethereum transactions increased from 1.23 million to 1.75 million between Sunday and Wednesday, indicating a growing interest in the Ethereum ecosystem.

This growth in network activity indicates a strong market, which can typically lay the foundation for a long-term recovery if macroeconomic factors are aligned. However, the current situation appears unclear, as market participants seem to be adopting a wait-and-see attitude due to the uncertainty surrounding President Trump's 90-day tariff suspension, which is nearing its deadline (July 9). This casts a bearish shadow over ETH and most of the cryptocurrency market.

Ethereum Price Prediction: ETH Tests Key Level of $2500 After Inverted Hammer

Ethereum experienced $75.11 million in futures liquidations over the past 24 hours, with liquidated long and short positions reaching $37.08 million and $38.03 million respectively.

In the past week, ETH briefly rebounded to the $2500 level before encountering resistance at the 100-period Simple Moving Average (SMA) and forming an inverted hammer. If ETH holds the support around $2400 and breaks through the resistance at $2510, it will confirm a bullish reversal.

However, breaking below the support line near $2400 may prompt ETH to test the upper boundary of the downward channel. If ETH breaks below the upper boundary of the channel and the lower boundary of the symmetrical triangle, it will validate the bearish flag pattern, with the price potentially falling below the key level of $2110.

The Relative Strength Index (RSI) is testing its neutral level, while the Stochastic Oscillator is positioned above the midline. If the RSI breaks through the neutral level, it may strengthen bullish momentum.

(Source: Trading View)