Ethereum experienced a 2.36% gain against Bitcoin over the last few days. However, Bitcoin still leads the market with 51.31% dominance over the total market cap. BTC’s dominance has seen ETH lose against Bitcoin over the last few days but a number of technical and fundamental factors appear to back Ether’s move above $2,400 on Feb. 7.
ETH/BTC daily chart. Source: TradingView
ETH price rises above a key support zone
The first interim bullish outlook for Ether is in a key area at $2,400, which was flipped from resistance to support on Feb. 7.
Ether’s price action over the last few days also saw it rise above the 50-day exponential moving average (EMA), which is currently at $2,317.
According to data from IntoTheBlock, this level is within the $2,278 and $2,349 price range, where 6.1 million ETH were previously bought by approximately 2.59 million addresses.
If ETH holds above this level, there’s a clear path ahead with minimal resistance, offering the potential for upward movement.
ETH IOMAP chart. Source: IntoTheBlock
As such, a daily candlestick close above $2,400 would see a change in Ethereum’s trend that could see the price explore the $2,500 to $2,700 zone.
ETH/USD daily chart. Source: TradingView
Supporting this positive outlook for Ethereum was the upward-facing moving average convergence divergence (MACD) indicator. Note that this trend-following oscillating indicator had sent a call to buy Ethereum on the daily chart which occurred on Feb. 6 when the 12-day EMA crossed above the 26-day EMA.
Ethereum’s DApp and NFT market activity surges
When analysing networks focused on DApp execution, the number of active users should be a top priority. Therefore, one should begin by quantifying the addresses involved with smart contracts, which serve as a proxy for the number of users.
Data from DappRadar shows that there has been a 5% spike in the number of unique active wallets (UAW) on the Ethereum network.
DApp activity on top chains, 7-days. Source: DappRadar
Notice that the increase in activity was consistent across all sectors, including transaction volume and NFT marketplaces, decentralized finance, collectibles, social and gaming.
Furthermore, the increase in the number of Ethereum’s active addresses engaging with DApps exceeded those of the Binance chain in the same period, which decreased by 14%.
Ethereum continues to stamp its authority in the NFT market due to its reliability and efficiency.
NFT sales per blockchain, 7-days. Source: CryptoSlam
Data from CryptoSlam shows that the Solana network surpassed Bitcoin and Polygon in NFT sales, accumulating $621.51 million in value.
Ether traders have positive expectations
Market participants are showing optimistic perspectives in regard to Ether’s shorter and medium-term price performance. While looking at ecosystem-related factors driving Ether’s price movement, X user Larry Spins said, “Ethereum continues to prove its potential as a leading platform for decentralized applications and smart contracts.”
According to Spins, this makes ETH “a promising investment for those looking to participate in the future of blockchain technology.”
On the other hand, independent trader and analyst Ty Digital highlighted the upward potential for Ethereum by pointing to bullish technical setup saying ETH could hit “$3,000 in due time.”
Investors’ appetite for Ethereum could continue to rise if the recovery in the broader crypto market continues. The slowing down of GBTC-linked selling of BTC at Coinbase could continue to positively impact the whole market.
Moreover, the eventual increase in the use of Ethereum-based protocols, the potential of a spot Ether ETF and the upcoming DenCun upgrade may prove to be a long-term catalyst for price growth.