Ether seeks recovery amid increased network activity

The largest altcoin surged on Feb. 1 amid increased network activity on the Ethereum network and continued anticipation of ETFs.

In the run-up to spot Bitcoin ETF approval, Ether rose above $2,700 to reach a 2024 high, but the subsequent sell-off caused the price to plummet.

The asset aims to start a new recovery this week, driven by increased network activity.

Let's take a look at the factors that shape Ether's price.

There has been a significant increase in network activity

Ethereum, the largest layer 1 network in terms of TVL, has also witnessed a significant increase in network activity.

According to data from Santiment, network activity has increased by 30 percent compared to 90 days ago. This showed that more users were using the network.

"Ether has risen above $2,345 for the first time since the decline began on Jan. 22. The number of active addresses and growth on the network has been encouraging."

Increased optimism for spot Ethereum ETF approval

With the approval of 11 spot Bitcoin ETFs on Jan. 10, the eyes of the market turned to the potential spot Ether ETF.

Investors expect a spot Ether ETF approval by May 23.

Standard Chartered Bank expects it to experience a rise like Bitcoin as it approaches its potential Ether ETF approval on May 23.

User X Elja shared similar sentiments, making an ambitious prediction that Ether could hit $10,000.

Ether is above a strong support level

Looking at the technical data, Ether is above a strong support level.

According to data from IntoTheBlock, the immediate support at around $2,250 sits between $2,230 and $2,297.

The Ether/USD daily chart below shows that the price has been trading at these levels since Dec. 5, 2023.

If the bulls manage to stay above this level, they will have a chance to push the price above the 50-day EMA of $2,306. The key level to watch here is the $2,500 level.

However, sellers could provide the first major support by pushing the price below this level at $2,190 with the 100-day EMA.