Ethereum’s Price in the Swing, More Ups or Downs?

• Ethereum (ETH) recently surged above the $1,860 resistance to reach an 86-day high.
• Ethereum sees a surge in new addresses, hitting the highest daily count since October 7th.

Ethereum (ETH) has broken free from its bearish trap, surging above the $1,860 resistance level on November 2, and climbing to an 86-day peak. This bullish momentum has sparked fervor among investors trading ETH derivatives, and a key catalyst behind this newfound enthusiasm may well be the widespread anticipation surrounding the potential approval of a Bitcoin exchange-traded fund (ETF) in the United States.

Data from Santiment’s on-chain analytics, reveals that Ethereum’s recent ascent past the $1,800 mark is closely linked to a substantial surge in the creation of new addresses. In fact, this surge represents the highest daily number of new addresses since October 7th. If this trend of network expansion continues, ETH may revisit the $2,000 range once again.

Further, the total daily transaction fees generated on the Ethereum network have increased since August. As of November 2, the total fees on Ethereum soared to a 60-day high of 3.28K ETH, marking a 30.63% surge in the past week. 

Ethereum Price Poised to Break $2,000 Barrier

According to the daily price chart, Ethereum’s price appears poised to reclaim the $2,000 territory in the coming days. Also, the technical analysis indicators lend support to this outlook. Even though the Relative Strength Index (RSI) has resided in the overbought zone for over a week, it suggests that ETH holders may remain strong in their pursuit of higher prices.

Notably, the upper band currently lies between $1,870 and $1,975. A decisive breakout above this resistance level could act as the trigger for an extended rally that propels Ethereum’s price toward the $2,000 mark. However, it’s crucial to consider the downside risks as well. The lower band is situated at $1,720 and $1,680, and should Ethereum fail to defend these vital support levels, the momentum could pivot bearish, potentially driving the price down to $1,600.

At the time of writing, ETH traded at $1,795 with a daily trading volume of $8.16 billion. Ethereum’s price has dipped by 2% in the past 24 hours, yet the leading altcoin has seen a 1.19% increase over the week. However, it’s worth noting that Ethereum’s price has experienced a 15.3% decline from its peak at $2,120 on April 17.