ETH price has recorded a price increase of 0.85% and is currently trading at $2,340, as per CoinMarketCap data. The shift is an indication of increased network activity, increased staking demand, and stable ETF inflows. Meanwhile, traders continue to encounter resistance levels in their immediate surroundings, which might influence the subsequent direction. Some of the big holders scaled back, but more general onchain developments are showing signs of improvement.
ETH/USD 24-hour chart: Source: CoinMarketCap
Network Activity Gives Ethereum Fresh Support
Ethereum’s recent strength did not appear out of nowhere. Instead, several onchain signals improved at the same time. That combination has helped ETH price regain traction after a softer period earlier this year.
The clearest shift comes from transaction activity on the Ethereum mainnet. The 14-day moving average of total transaction counts reached a new record. Significantly, that level moved above the peak seen in February. Rising transaction counts often show that more users are returning to the network.
Active addresses also started to recover after a long decline. Earlier, that metric had fallen to its lowest point since January. However, the recent rebound suggests that user participation has improved. That matters because stronger address activity often supports price strength over time.
Besides higher transaction counts, Ethereum has also seen stronger staking demand. Since the start of the month, total value staked has increased by 550,000 ETH. That pushed the total amount staked to 39.28 million ETH. Additionally, year-to-date staking inflows reached 3.29 million ETH.
That trend is an indication of increasing confidence in the long-term use of Ethereum. Staking transfers coins out of the liquidity pool and helps to secure networks. Therefore, the inflows may continue to diminish the supply in the open market. As demand is also enhanced, the price of ETH tends to increase.
Staking Grows, but DeFi Capital Stays Flat
Even with stronger onchain activity, one important metric has not followed the same path. Ethereum’s total value locked has stayed largely unchanged over the past month. It has hovered near $55.6 billion despite rising transaction counts and more staking activity.
Source: CryptoQuant
That divergence adds an important layer to the current story. More people may be using Ethereum and staking ETH, yet fresh capital has not rushed into DeFi protocols. Moreover, flat TVL can suggest that traders still prefer caution in decentralized finance.
Source: DefiLlama
This split does not erase the recent bullish signals. However, it does show that the recovery remains uneven. Ethereum’s base-layer usage looks stronger, while DeFi growth still lacks momentum. Consequently, the current ETH price rally may rely more on network participation and market positioning than on broad capital expansion.
Retail activity also appears to have increased during the latest move. CoinGlass data showed Ether futures open interest at $33.70 billion, up nearly 2% in 24 hours. Rising open interest usually means more positions are opening across the market. That can support price movement when momentum stays positive.
ETH Whales Reduce Exposure Amid Rally
While network data has improved, whale behavior tells a more careful story. Santiment data showed a slight drop in whale-held ETH, excluding exchange balances. Holdings fell from 123.61 million ETH to 123.44 million ETH in one day.
Supply Held By Whales: Santiment
That decline equals roughly 170,000 ETH. At current prices, that amount stands near $400 million. The reduction remains small in percentage terms. However, the direction matters because large holders trimmed exposure rather than adding more coins.
This pattern does not automatically signal a bearish reversal. Large holders often rebalance positions during rallies. They may also hedge exposure while waiting for stronger confirmation. Even so, the move suggests that some participants see the current zone as a point for caution.
Moreover, the derivatives market shows a similar tone. Open interest fell from $12.31 billion on April 14 to $11.98 billion. At the same time, the funding rate moved from positive 0.011% to negative 0.005%. That change shows that short positions gained some ground against longs.
ETH Derivatives OI Funding: Santiment
However, the shift does not look extreme. Funding turned only slightly negative, and open interest did not collapse. Consequently, the data points more toward hedging than aggressive bearish conviction. ETH price still has room to advance if broader demand continues to improve.
Ethereum ETFs Extend Five-Day Inflow Streak
Another supportive factor came from the spot ETF market. Spot Ethereum exchange-traded funds posted combined net inflows of $67.9 million on May 15. That result extended the recent inflow streak to five straight trading days.
BlackRock’s ETHA led the session with $31.5 million in net inflows. Grayscale’s ETH followed with $24.8 million. BlackRock’s ETHB added $9.8 million, while Franklin Templeton’s EZET brought in $1.8 million.
These figures are important since ETF inflows can indicate the increasing institutional-style demand for regulated products. Moreover, frequent inflow days tend to offer a more stable demand base compared to short-term speculation. Such support might enable the ETH price to remain strong in volatile times.
ETF demand also complements the rise in staking activity. One trend reduces liquid supply, while the other adds new buying pressure. Besides, both trends can continue without requiring a surge in DeFi participation. That gives Ethereum several paths to maintain support above recent levels.
ETH Price Holds Strong Above Support
On the 4-hour Ethereum chart, ETH price continues to show a constructive structure. Ether traded near $2,340 while holding above the 20-day and 50-day exponential moving averages. Both averages sit just below $2,200 and support the recent bullish bias.
Momentum indicators still lean positive. The Relative Strength Index (RSI) is around 57, thus indicating healthy buying pressure. In addition, the MACD is also high, indicating that the momentum is still on the positive side. Nevertheless, it is also possible to have a short pause or temporary pullback due to the same condition.
ETH/USD 4-hour price chart: Source: TradingView
If ETH price closes above $2,340 and then clears $2,338, the next upside targets become clearer. Analysts have pointed to an unfilled gap between $2,474 and $2,634 as the next likely destination. Beyond that, the market may start focusing on the $2,900 to $3,050 zone.
That higher area could become a major test for the current rally. A daily close above $3,056 would strengthen the case for a broader trend reversal. Until then, Ethereum still needs to prove that this rebound can extend through resistance.
On the downside, support remains important. One closely watched invalidation level sits near $1,765. As long as ETH price holds well above that area, the medium-term structure stays intact.
Final Take
Ethereum’s outlook reflects a mix of growing strength and measured caution. Network activity has improved, staking inflows have accelerated, and ETF demand has remained positive. However, whale trimming, flat TVL, and soft derivatives sentiment still warrant attention. Even so, if participation continues to rise, the ETH price may continue to climb in the near term.
