Over the past year, cryptocurrency market participants have turned to options like Solana and Avalanche alongside Ethereum. Projects such as NEAR, Harmony, Cosmos, and Fantom have made progress.

Network growth in Ethereum has been on a downward trend since the end of October 2021, according to Santiment data. Ethereum price touched an all-time high of $4,867 on November 10, 2021. ETH, which has fallen since then, is positioned 33% behind the ATH level.

Positive Signals for Ethereum

According to on-chain analytics firm Santiment, ETH's downward trend can be largely attributed to the CPI, inflation and macro concerns surrounding the Fed's decisions. ETH's daily active orders, on the other hand, look healthy despite the stagnant price and few new entries.

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Santiment showed the positive signal for ETH while reporting that the Ether network is still very active. DAAs (daily active address) remain a good technique for monitoring network activity over time as they show blockchain usage. As a result, DAAs can sometimes be used as an important indicator for price action. The demand for network access can increase the demand for the native presence of the blockchain. Another clue is that the supply of ETH on exchanges continues to decrease even when the price drops. This reveals that some investors are saying to continue with HODL.

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Ethereum Price Corrects Drop

Ethereum started a downside correction from the $3,400 resistance zone. The price is trading above $3,250 and the 100 hourly simple moving average. There was a break below a major bullish trend line with support near $3,300 on the hourly chart of ETH/USD (data feed via Kraken). If the pair stays above the $3,250 support zone, it could start a fresh increase.

Ethereum started a strong increase above the $3,320 resistance zone. ETH even broke the $3,400 resistance zone and the 100 hourly simple moving average but lacked momentum.

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A high was formed near $3,412 and the price is now correcting gains. Ethereum price declined below the $3,320 support. There was a break below the 23.6% Fib retracement level of the key increase from the $2,931 high to $3,412 high.

Besides, there was a break below a major bullish trend line with support near $3,300 on the hourly chart of ETH/USD. It is now trading above $3,250 and the 100 hourly simple moving average.

On the upside, an immediate resistance is near the $3,300 level. The first major resistance is near the $3,320 level. A clear move above the $3,320 level could start another increase in the near term. The next major resistance is near the $3,400 level, above which ether price could test $3,480. Any further gains could send the price towards the $3,550 level in the near term.