Ethereum (ETH) is showing signs of renewed momentum, posting significant gains this week as key network metrics point to a recovery in user activity and decentralized finance (DeFi) adoption.
What’s Driving the Surge?
- Network Activity Up: On-chain data shows a noticeable increase in transactions, gas usage, and active addresses.
- TVL Growth: Ethereum’s total value locked (TVL) in DeFi protocols rose by over 6% this week, signaling renewed investor engagement.
- Technical Momentum: Bullish indicators, including a breakout from resistance at $2,800, suggest further upside toward the $3,000 psychological level.
Broader Context
- Post-Pectra Optimism: Following the successful May 7 Pectra upgrade, investor sentiment around Ethereum’s scalability and user experience has improved.
- Altcoin Correlation: ETH’s rally has lifted other smart contract tokens, including Solana (SOL) and Avalanche (AVAX), as confidence returns to Layer 1 assets.
Final Thoughts
With Ethereum approaching $3,000, the market is watching closely to see if this breakout holds.
If network activity continues to rise and DeFi protocols regain traction, ETH may reassert itself as the bellwether of Web3 growth in the post-upgrade era.
