Ethereum: Price Falls While Users Hit Record High... 'Surge' Signal Appears Amidst Decline

▲ Ethereum (ETH)

Despite a declining price trend, Ethereum (ETH) is forming a bullish divergence, a strong technical rebound signal, by recording its highest-ever user count.

Cryptocurrency specialized media Bitcoinist reported on April 27 (local time) that Ethereum's price recovered the $2,300 level, indicating that buying forces have moved to regain control. Currently, a historical bullish divergence has been observed on the Ethereum chart, where user activity indicators are rising while the price is falling or stagnating. This is a temporary disconnect where market fundamentals are strengthening but the price is not keeping pace, suggesting a high probability of an explosive price correction soon.

According to data from on-chain data analysis firm Santiment, the number of active users on the Ethereum network recently hit an all-time high. While the price showed a sluggish trend, actual network usage increased explosively. Cryptocurrency analyst Sebastian Villafuerte stated, "This phenomenon is a typical sign that appears just before a large price rebound," analyzing that Ethereum's intrinsic value is overwhelming its market price.

Technical indicators are also uniformly pointing upwards. The Relative Strength Index (RSI) is rising from its lows, indicating that buying energy is accumulating. The Moving Average Convergence Divergence (MACD) is also nearing a golden cross formation, raising expectations for a short-term trend reversal. If the breakthrough of the Ichimoku Cloud is successful, Ethereum could surge directly to the $2,800 mark, which was a strong resistance level.

From the supply side, Ethereum's scarcity is also increasing. Due to continuous capital inflow into Ethereum spot ETFs and an increase in staked volume, the actual circulating supply in the market is rapidly decreasing. Whale investors are utilizing the current low price levels as an accumulation opportunity, moving assets off exchanges. This supply shock phase, coupled with bullish divergence, is expected to act as a catalyst to accelerate Ethereum's value re-evaluation.

Ethereum has completed preparations to enter a new price formation phase based on its robust user base and technical signals. The point at which the historical discrepancy between price and indicators is resolved is expected to be the most crucial rebound point of this cycle. Market participants are closely watching the $2,300 support level, keenly observing the start of Ethereum's anticipated record-breaking surge rally.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*