Ethereum targets $2,700 as explosive network growth fuels rally

Ethereum (ETH) has been the second-best performer among the top 10 cryptocurrencies by market cap this week, behind Hyperliquid (HYPE).

The coin is up nearly 8% since the start of the week and is currently trading above $2,350.

It is currently showing improving signs across several key onchain metrics.

The fourteen-day moving average of total transaction counts on the Ethereum mainnet has surged to a record high, surpassing levels seen in February.

With improving metrics and increasing retail participation, Ether could rally higher in the near to medium term.

Ethereum’s network activity improves

Data obtained by CryptoQuant revealed that Ethereum’s network activity has increased in recent weeks.

There has been a recovery evident in Ethereum's active addresses, which have begun trending upward after an extended decline to their lowest level since January.

The increase in network activity also comes with an accelerated rise in staking inflows.

Since the start of the month, Ethereum's total value staked has expanded by 5,50,000 ETH to 39.28 million ETH.

That figure has pushed year-to-date staking inflows to 3.29 million ETH, indicating strong investor interest in contributing to Ethereum's security.

However, the strong uptrend across these metrics hasn’t affected Ethereum's total value locked (TVL).

The TVL has remained largely flat at around $55.6 billion over the past month, suggesting weak capital inflows into DeFi protocols on mainnet.

Retail demand has also increased over the past few days.

According to CoinGlass, Ether’s futures Open Interest (OI) now reads $33.70 billion, up by nearly 2% in the last 24 hours.

The increase in OI  suggests that traders are opening more positions in the market, and this could see ETH’s price rally higher in the near term.

Ethereum price forecast

The ETH/USD 4-hour chart is bullish and efficient as the market has been bullish since the start of the week.

Ether is currently trading at $2,356, maintaining a constructive bullish bias as price holds above the 20-day and 50-day Exponential Moving Averages (EMAs), clustered just below $2,200.

The 100-day EMA at $2,376 serves as immediate resistance, reinforced by the nearby hurdle at $2,388, suggesting that bulls face a key decision area after the latest advance.

Currently, market momentum remains positive. The Relative Strength Index (RSI) is near 63, pointing to sustained buying pressure.

The MACD lines are hovering in overbought territory, warning that upside progress could slow or trigger a corrective pause.

If the buying pressure persists, ETH could close the daily candle above the 100-day EMA at $2,376 and the $2,388 resistance.

This would pave the way for the bulls to push toward the next bullish objectives at $2,746 and then $3,411.

However, if the market undergoes a correction, initial support is seen at $2,211.

The next major support levels are seen at the 20-day EMA at $2,200 and the 50-day EMA at $2,183. 

A deeper pullback exposes the horizontal floor at $2,107 and, if broken, more distant levels at $1,909 and $1,741.