Ethereum is currently demonstrating significant bullish momentum as two key indicators align: a major technical pattern forming on the weekly chart and a notable rise in on-chain activity. This combination points towards increased market participation and a more solid market structure, suggesting a shift beyond temporary price fluctuations.
The weekly ETH/USD chart reveals a prominent inverse head and shoulders pattern, a configuration generally linked to long-term trend reversals. The left shoulder emerged during a prior consolidation phase, followed by a deeper sell-off that shaped the head. Subsequently, the price rebounded and retraced, leading to the formation of what appears to be the right shoulder.
As $ETH approaches the completion of this substantial inverse head and shoulders pattern, the breakout target is estimated to reach $7,600, calculated from the height of the pattern projected upwards from the neckline. The clearly defined neckline resistance marks the critical level Ethereum must decisively breach to confirm this bullish formation. Recent price movements indicate that ETH is gaining traction toward this pivotal neckline, reflecting sustained buying pressure rather than merely a fleeting breakout.
In conjunction with the technical developments, Ethereum”s network activity has surged significantly, with active addresses nearly doubling from approximately 496,000 to around 800,000 within just a week. This sharp increase indicates that a growing number of users are actively engaging with the network, whether through transactions, applications, or transfers. The most recent data illustrates the highest level of activity recorded in the observed timeframe.
The recent spike in active addresses reflects a broader engagement with the network rather than isolated trading actions. This suggests that demand for Ethereum is expanding across the network rather than being limited to derivatives or short-term speculation.
When viewed together, the technical setup and the rising on-chain activity tell a coherent story. The weekly inverse head and shoulders indicates that Ethereum is stabilizing and rebuilding after a prolonged corrective phase, while the increase in active addresses signifies renewed interest and participation within the network.
This correlation is crucial. Technical patterns tend to gain reliability when they align with increasing on-chain activity, as it indicates that price movements are supported by genuine usage rather than thin liquidity. Currently, Ethereum is at a critical juncture, with the weekly chart structure nearing its defining level and network activity escalating rapidly. Regardless of whether the neckline is successfully breached, the data suggests that Ethereum is no longer trading in isolation from its underlying fundamentals.
Both the price structure and network metrics indicate a market that is actively re-engaging, potentially paving the way for significant price movements if the current momentum continues to build.
