Ether stuck below $2k as network growth halts: Check forecast

Ether, the second-largest cryptocurrency by market cap, is trading in the green after adding less than 1% to its value.

However, it is still trading below $2k as the Ethereum network growth has stalled over the past week, halting an explosive rise over the past two months.

Despite the halt, Ether bulls are eyeing the $2,107 resistance level in the near term as the broader crypto market recovers from its recent dip.

Ethereum active addresses are now declining

According to CryptoQuant, active addresses and transaction counts on the Ethereum network surged to record highs over the last two months despite Ether losing 42% of its value during that period.

However, both metrics have begun to decline over the past week. The decline coincides with Ether’s price consolidation in the last two weeks. 

CryptoQuant further revealed that ETH's Net Taker Volume on Binance has remained in negative territory since January, suggesting that short traders still dominate futures activity on the crypto exchange. 

This metric measures the difference between buy and sell volumes of traders using market orders.

However, despite the bearish signals, US selling pressure is gradually declining.

Outflows in US spot ETH exchange-traded funds (ETFs) have slowed over the last few days.

According to SoSoValue, Ethereum ETFs have seen net inflows of $6.8 million so far this week.

Furthermore, while the Coinbase Premium Index remains in negative territory, it has improved slightly from lows seen earlier this month.

Finally, Ethereum Accumulation Addresses have intensified buying activity over the past few months as they take advantage of the dip.

Investors are also pumping funds into ETH staking.

Currently, there are 3.28 million ETH tokens on the staking queue. 

Sharplink, the Ethereum treasury company backed by Consensys, announced on Thursday that it now holds 867,798 ETH, valued at approximately $1.68 billion, as of Feb. 15.

The firm’s CEO revealed that Sharplink has staked nearly 100% of its ETH holdings and has staked its holdings since the beginning.

Ether consolidates and eyes the $2,107 resistance level

At press time, ETH is trading at $1,963, up by less than 1% in the last 24 hours.

The ETH/USD 4-hour chart remains bearish as the coin is trading below the 20-day Exponential Moving Average (EMA) at $2,157, with strong resistance around the $2,107 region.

The Relative Strength Index (RSI) on the 4-hour chart is 49, indicating a fading bearish momentum.

A move back above 50 could see the bulls regain control and push ETH towards the $2,107 resistance level.

The next major resistance level stands at $2,388.

However, if the bearish trend persists, ETH could slip towards the $1,741 support zone, with another support level at $1,524.