- Ethereum User involvement and Defi influx suggested a growing momentum on the chain.
- Exchange running and an ETH Bullish Chart Pattern indicated a breakout potential near $ 2,824.
Since the beginning of June, Ethereum [ETH] Has seen a surge rise of the ecosystem. Weekly active addresses have risen to 17.4 million, which marked a new of all time.
This includes a sharp increase of 18.43% in layer 2 interactions, further enhanced by a 7.55x multiplier, which indicates a massive adoption posts in scalability networks.
Although cross-chain activity saw a slight decrease, the enormous volume of the use of core Ethereum is renewed interest from both retail and institutional participants.
That is why the sharp increase in activity could be the scene for a potential breakout -powered breakout.
Can Defi support Ethereum’s Bullish story?
The total value of Ethereum locked (TVL) climbed to $ 86.63 billion – an increase of 1.28% in 24 hours per Defillama. This reflects persistent capital inflow in Ethereum-based Defi protocols despite recent market-wide volatility.
Investors clearly regain confidence in Defi’s viability in the long term, using Ethereum as the preferred deposits.
As more assets flow into loans, deployments and liquidity protocols, the demand for Ethereum on-Chain strengthens.
Consequently, a growing TVVL can offer essential support to the price action of Ethereum and the growth of ecosystem in the short term.
Source: Defillama
Will Exchange outflow drive a supply squeeze for ETH?
At the time of writing, Ethereum registered a negative exchange network flow of a decrease of 1.59% in balance between large stock exchanges. This suggests a trend of users who withdraw assets to self -coasts or locking contracts.
Naturally shrinking reduced exchange balances immediately selling pressure and improve bullish setups during momentum phases.
If the trend applies, ETH can introduce a scenario for the Squeeze of Supply Squeeze where even moderate demand peaks cause steep price movements.
Source: Cryptuquant
Are traders too confident as volatility dips and lungs are accumulating?
The volatility has fallen from 80.25% to 47.3% in just two days.
At the same time, Binance’s ETH Long/Short Ratio was 1.84, at the time of the press, with 64.82% of traders long.
This reflects a clear bullish bias, although it also expressed concern about overcrowded transactions. Lower volatility and stacked long positions can precede sharp movements, especially if the sentiment is abruptly shifting.
For now, however, the dominant long exposure suggests that traders expect upside down.
Source: Intotheblock
Is the reverse head and shoulder pattern a breakout?
Ethereum continues to consolidate within the range from $ 2,383 to $ 2,824 and forms a clean inverted head and shoulder pattern.
Price has recently returned to $ 2,515.80 and won 0.87%on the day. The neckline resistance of $ 2,824 remains the most important breakout level, while $ 2,383 acts as critical support.
That is why a confirmed movement above the neckline could validate the bullish structure and push ETH to the $ 3,000 marking.
However, not breaking the resistance of the resistance can postpone the upward impulse and cause consolidation in the short term.
Source: TradingView
Can ETH break above $ 2,824 and maintain its rally?
All signals – from address activity and TVL to the exchange of Netflows and Trader Sentiment – Bullish tilt.
But it all comes down to $ 2,824. A clean break above this neckline could activate the next leg of Ethereum.
Until that time, the compression of volatility and slow positioning could keep the prize prisoner or worse, turn the movement to a fake.