Can Ethereum (ETH) Price Eyes $3,600 Amid High Usage?

Ethereum (ETH) price is showing renewed momentum as gas fees fall and activity on Layer 2 networks increases. These shifts are being supported by key technical setups, growing user participation, and changes in market sentiment.

Analysts are watching for a potential price move toward $3,600 in the near future. Keep reading to find out whether ETH price will achieve that target.

Layer 2 Adoption Drives Ethereum Network Growth

Ethereum’s transaction activity continues to grow, largely due to increased use of Layer 2 scaling networks. According to Bitwise Asset Management and Token Terminal data, Layer 2 platforms, including Arbitrum, Optimism, Base, Starknet, and ZKSync, have recorded steep growth in transaction count since the start of 2023.

These networks are helping to expand Ethereum’s reach by making it faster and more cost-efficient.

Meanwhile, the Ethereum mainnet hasn’t seen much variation in terms of transaction volume, while markets rise and fall with their prices. This consistent usage indicates that core network engagement is still strong.

As more users interact with decentralized applications and smart contracts, Ethereum’s role as a foundational blockchain remains intact.

Layer 2 activity now represents a large portion of total network usage. This increase, even during periods of price weakness, points to growing demand for Ethereum’s infrastructure.

Ethereum (ETH) Price Breaks Out of Technical Pattern

A bullish structure is also forming on the ETH price chart. ETH appears to have broken out of a symmetrical triangle pattern as per chartist WhatzTheTicker. It is a pattern typically heralding the end of consolidation.

The next level of resistance, once the breakout happens near $1,593, is $2,200 – $2,400. Ethereum may confirm a trend change direction if it retests and holds this area. This structure places the long-term target around $3,600, which is in line with previous Ethereum price highs from mid-2022.

Such a pattern indicates that Ethereum is laying the grounds for a more significant move as global liquidity conditions improve. For instance, lower interest rates and high capital inflow into digital assets could help ETH gain upward movement under the support of a macro environment of risk-on assets.

Funding Rate and Ethereum Price Sentiment Support Rebound Potential

Furthermore, funding rate data from CoinGlass adds insights from current sentiment in the derivatives market. Most of March and April saw the Open Interest-Weighted Funding Rate remain around zero or slightly negative.

Usually, this type of funding behavior indicates that traders are not too bullish. Yet, by mid-April, funding rates started to turn slightly positive. ETH price has stabilized to begin with, and this suggests early long positions being started.

A local price low was registered during early February after a sharp negative funding rate, followed by a minor recovery. The same set-up is forming again and may indicate a potential upward pressure if the market conditions remain unchanged.

Low Gas Fees are Supporting On-Chain Growth

One of the most notable developments is the drop in gas fees on Ethereum. According to the latest network data, average fees have reached as low as 0.372 gwei, approximately $0.01 per transaction. These levels are among the lowest recorded in recent years.

Lower fees reduce the cost of interacting with the application, making it easier. With fewer cost barriers, developers and users can develop and use it, transact, deploy smart contracts, and use decentralized finance tools.

This environment provides space for further expansion of the Ethereum ecosystem, especially for users using other blockchains for cheaper transactions.

However, reduced gas fees can sometimes be a result of low network demand, but the rising Layer 2 traffic here would not indicate that. Ethereum’s adoption and usage outlook is relatively positive, and growing activity may help Ethereum price achieve higher targets soon.