Ethereum’s network is processing unprecedented transaction volumes as of January 26, signaling strong adoption at scale. The number of transactions per second increased dramatically from 230 to over 1,800 in a matter of days.
This is because 98.5% of this traffic is on Layer 2 solutions rather than Mainnet, allowing users to pay significantly lower fees than the peak of 2021.
Source: X
Expert Leon Waidmann highlighted that this is not the same as the rise in fees in 2021. At that time, high fees were driven by speculation and a trading rush.
Today, the increase in TPS represents real economic activity, where businesses and users are paying for the transactions that keep actual economic activity alive.
Fees are slightly higher, but transaction fees are still much lower than those of other blockchains, making Ethereum a cost-effective solution for traders and developers.
Also Read: Ethereum (ETH) Pulls Back as Major Investors Accumulate, Eyes on $3,072 Resistance
Ethereum (ETH/USD) is currently at $2,906, up 3.25% but still below the 20-day moving average of $3,110, according to Tradingview data as of January 26.
Bollinger Bands are quite broad, indicating higher volatility due to recent market selling. The current market is close to the lower band at $2,790. Rallies are occurring, but the strength of the market is not strong, and selling is still present.
Source: Tradingview
ETH has been going sideways since the middle of December, fluctuating but not maintaining a strong bullish momentum. The first level of support is at $2,790-$2,800, and the resistance level remains strong at $3,300-$3,430.
The technical analysis suggests a cautious approach, as the RSI is at about 40, below 50, indicating that sellers are still in momentum, and the MACD is negative, indicating that the recent rise might be just a temporary movement.
However, some analysts still have hopes for the future of Ethereum, even if the price may remain stable in the coming period. Crypto Caesar, an analyst, said that Ethereum may overcome its current resistance level and reach $10,000 in the coming years.
Source: X
He added that increased on-chain activity and actions of major market players usually signal that a bottom is near in the market, which is a good sign for the future of Ethereum.
The Ethereum network is improving its ability to process more transactions per second due to the use of Layer 2 scaling solutions that enable fast and cheap transactions. Market players also focus on major support and resistance levels to determine the next major market movement.
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