Ethereum Price Dominance Continues to Surge Against Bitcoin : What’s Next For ETH Price?

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Ethereum (ETH) price has been attempting to rally beyond the recent high of around $2,700 in the past few days. The large-cap altcoin focused on ensuring a seamless adoption of smart contracts has attracted more attention from institutional investors and retail traders due to its vast web3 ecosystem.

Moreover, the recent approval of several spot Bitcoin exchange-traded funds (ETFs) in the United States significantly increased the odds for the SEC to issue a green light for the trading of ETH spot ETFs. Consequently, Ethereum has recorded increased daily trading volume and buy orders compared to the flagship coin.

Ethereum Network Records Increased On-chain Activity

Earlier this week, the number of Ethereum’s transactions in blockchain per day spiked to a three-year high of about 1.96 million but has since stabilized at around 1.28 million. According to on-chain data analysis provided by Santiment, the number of new addresses created on the Ethereum network has averaged about 89.4k since the calendar flipped in January, from 70.4K in November.

The spike in new Ethereum users has consequently increased the overall buying pressure, whereby the ETH exchange supply dropped from 8.18 percent to about 8.10 percent in the last 10 days. The decline in exchange Ether supply is an indication more investors are sending their coins to non-custodial wallets and perhaps staking programs like Lido (LDO).

ETH Price Analysis

From a technical standpoint, Ethereum’s price is on the cusp of a major upsurge in the short term following a successful retest of a macro breakout. With short-term targets of between $3,000 and $3,500, based on the auto-fib retracement, the next few weeks will undeniably register heightened altcoin volatility. Moreover, Ethereum’s weekly Relative Strength Index (RSI) is attempting to break above the 70 level for the second time in less than a month.