Recently, the on-chain activities of the Ethereum [ETH] ecosystem have shown significant signs of recovery, from user participation to capital inflows into decentralized finance (DeFi), all of which have released strong bullish signals. XBIT data shows that ETH is gradually accumulating momentum to break through the key resistance level of $2,824, but the market still needs to be vigilant about short-term volatility risks.

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Since the beginning of June, the number of weekly active addresses of Ethereum has jumped to 17.4 million, a record high. XBIT (DEX Exchange) analysts said: This growth not only reflects the return of retail investors, but also highlights the recognition of the long-term value of Ethereum by institutional players. It is worth noting that the interaction volume of Layer 2 (L2) solutions surged by 18.43% month-on-month, and further amplified the scalability advantage of the network through a 7.55x multiplier effect. Although cross-chain activities have slowed slightly, activities on the core Ethereum chain still show strong demand, laying a user foundation for subsequent price movements.

According to data from Bijie.com, the total locked value (TVL) of Ethereum has climbed to US$86.63 billion, up 1.28% in 24 hours. Despite the increased market volatility, investors still choose to allocate assets to the lending, staking and liquidity protocols of the Ethereum ecosystem. This trend shows that Ethereum's position as the preferred settlement layer of DeFi remains solid, and the continued inflow of funds not only enhances on-chain demand, but also provides structural support for prices.

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Currently, the net flow of Ethereum exchanges is negative, and the balance is down 1.59% from the previous period. This phenomenon shows that users are more inclined to withdraw assets to self-custody wallets or pledge contracts rather than sell them. XBIT (DEX Exchange) analysts believe that the supply tightening effect may amplify the impact of market demand, and even a small increase in buying may drive prices significantly upward. If this trend continues, ETH may gradually enter a state of supply shortage, further strengthening its scarcity attributes.

From the price chart, Ethereum is consolidating in the range of $2383 to $2824, and gradually forming a clear "inverted head and shoulders pattern". This pattern is usually regarded as a sign of medium- and long-term trend reversal. The recent price rebound to $2515.80 (up 0.87%) has pushed the neckline resistance level ($2824) to a key breakthrough point. If it successfully stands at this level, ETH is expected to open up space and target $3000; on the contrary, if the breakthrough fails, it may trigger a short-term pullback or consolidation.

Although bullish sentiment is dominant (Binance ETH long/short ratio is 1.84, with longs accounting for 64.82%), volatility has dropped sharply from 80.25% to 47.3% in two days, and we need to be wary of the reversal risk brought about by "overcrowding". XBIT (DEX Exchange) analyst investment officer historical experience shows that long positions accumulated in a low volatility environment may be quickly closed due to sudden changes in market sentiment, resulting in sharp price fluctuations.

TWITTER : @XBITDEX

Based on the on-chain data, capital flows and technical patterns, Ethereum's short-term bullish logic is clear. However, the effectiveness of the $2,824 breakthrough is still the key - if accompanied by increased trading volume and continued heating up of on-chain activities, the rise may be more sustainable; otherwise, the market may fall into a "false breakthrough" trap. XBIT (DEX Exchange), a safer and more trustless trading option for investors: low slippage, high liquidity; anti-censorship and security; cross-chain transaction support; at a time when market confidence is low, XBIT (DEX Exchange) features make it an ideal platform for short-term holders to reduce CEX dependence and optimize asset allocation.

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Contact：Rudy Divin

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