Ethereum is holding ground above $3,200 as the broader crypto market shows tentative signs of recovery after weeks of volatility. Price action remains cautious, but bulls are defending this level as a potential base for the next leg up — and on-chain data is beginning to back that effort. On-chain activity picks up - Analysis from CryptoOnchain using CryptoQuant data shows a notable jump in network usage: the 7-day moving average of total transfer count has climbed to roughly 870,000 transactions, up from about 600,000 in the weeks before Dec. 29 — nearly a 45% rise. - This isn’t just a fleeting blip. The increase points to sustained engagement across Ethereum’s ecosystem — decentralized apps, DeFi protocols, NFT marketplaces and regular value transfers — even as price consolidates. Why this matters - Transaction volume is one of the clearest measures of real network demand, because it reflects actual usage rather than price-driven speculation. - Historically, sustained rises in on-chain activity have often preceded healthier price action: more transfers mean greater demand for block space and for ETH as the utility token (gas payments), which can support market confidence over time. - With ETH consolidating around $3,200, the key question is durability: if elevated activity persists, it could form a stronger fundamental base for a new upward move. Technical picture - On the weekly chart, Ethereum appears to be stabilizing after a corrective phase. The $3,200 area has become a short-term pivot and battleground between buyers and sellers. - Structurally, ETH remains above major long-term averages. The 200-week moving average is trending up and sits well below current prices, offering macro support. - Near-term resistance is clustered around the converging 50-week and 100-week moving averages in the $3,300–$3,500 range. - Trading volume has normalized from earlier expansion, suggesting the market is digesting gains rather than undergoing aggressive distribution. Key scenarios to watch - Bull case: reclaiming and holding above $3,500 would tilt the structure in favor of another push toward higher highs. - Bear case: losing $3,200 could open the door to a deeper pullback toward the $2,800–$3,000 demand zone, where buyers have previously stepped in. Bottom line: on-chain metrics are flashing a more constructive backdrop for Ethereum even as price consolidates. If the recent uptick in transactions proves sustainable, it could give bulls the fundamental support needed for a fresh rally — otherwise, $3,200 remains the line in the sand. Image: ChatGPT. Chart: TradingView.com. Read more AI-generated news on: undefined/news

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