Ethereum Price Forecast: On-Chain Data Favors Bullish Outlook

Ethereum (ETH) has jumped by 1.7% in the past 24 hours, allowing the token to recover from $2,800 to $3,000 since the week started.

A steady increase in trading volumes in the past few weeks shows that bulls keep fighting “tooth and nail” to keep the price above this psychological threshold.

In the past day alone, volumes have increased by 25% to $27.7 billion, accounting for 7% of the token’s circulating market cap.

Volumes Have Gone Up for Five Consecutive Weeks

Data from Artemis confirms that volumes have been increasing for 5 weeks in a row, moving from $107 billion during the last week of December to $180 billion as of last week.

Ethereum (ETH) Weekly Trading Volumes – Source: Artemis

This 68% increase has not managed to push ETH back to $4,000, as volumes are still below the levels seen in July-August 2025, back when the top altcoin traded at or above that price.

This appears to be an indication of ongoing accumulation at a point when the market is struggling to find direction. A combination of negative macro catalysts, like President Donald Trump’s hostile trade policies, has probably kept a lid on buyers’ interest.

Transaction Volumes on Ethereum Spike by 68%

The October 10 flash crash also flushed out thousands of traders who lost billions as a result of Trump’s whims.

Meanwhile, market sentiment remains depressed as the Fear and Greed Index currently sits at 37, indicating a cautious attitude among investors.

Ethereum (ETH) Weekly Transactions – Source: Artemis

Nevertheless, on-chain metrics show a spike in network usage. Artemis data confirms a spike in transaction volumes since the second week of December. Weekly network activity increased from 9.9 million transactions processed back then to 16.6 million as of last week.

Institutional adoption of the Ethereum network as the key infrastructure powering hundreds of new decentralized apps and products being launched could be driving these higher usage levels.

The market has not yet incorporated this improvement in the network’s fundamentals into the price, but might in the near future, as soon as sentiment picks up.

ETH Has Traded Range-Bounced Between $2.8K and $3.4K

The daily chart shows that ETH has been in consolidation since late November. The price has moving in a narrow range between $2,800 and $3,400, giving us multiple entry and exit signals along the way.

ETH/USDT Daily Chart (Binance) – Source: TradingView

Once again, ETH has bounced off $2,800 after a sell signal on January 20 delivered an anticipated a 5% drop.

Now, we could be heading to retest the $3,400 mark if positive momentum gains traction. The Relative Strength Index (RSI) has not yet moved above the 14-day moving average, but it seems poised to.

Buy Signal Pops Up After Another Bounce Off $2,800

Heading to the 4-hour chart, a “buy” signal has already flashed, and ETH is already forming a bullish price structure. This could be an early indication that ETH is ready to reverse its downtrend.

ETH/USDT 4H Chart (Binance) – Source: TradingView

A retest of $2,940 would set the stage for an interesting entry. This is the key structural level to watch. As long as ETH stays above this line, the odds of a bullish move back to $3,400 will increase dramatically.

The RSI confirms that bullish momentum is accelerating as it is nearing the 60 level. Hence, all technical indicators point to a confirmed bounce that could send us back to the levels that ETH hit just 15 days ago.