• Ethereum (ETH/USD) is trading at its crucial resistance zone of $1,250 after recovering 3% on Wednesday.
• Ethereum network surpassed Bitcoin in transaction volumes in 2022
• Technical outlook shows ETH trading on a short-term trendline initiated from the $1,100 bottom.
The cryptocurrency market is on a slow recovery as the new year progresses, with Ethereum (ETH/USD) leading the charge. After plunging below the $1,250 level in mid-Dec, Ethereum has been hovering around this resistance level since Wednesday after recovering 3%.
This is welcome news to those looking to get back into the crypto market, although it is still too early to judge how far the price can surge. Bulls will be delighted by cryptocurrency news on network activity, which saw Ethereum surpass Bitcoin in transaction volumes last year.
According to data from Ycharts and Nasdaq, Ethereum witnessed 408.5 million transactions in 2022, surpassing Bitcoin’s 93.1 million. Ethereum’s higher volatility was largely connected to events such as NFT launches. Bitcoin, however, retained the crown as the most searched cryptocurrency.
As of January 2, data from Bitinfocharts shows that transaction volumes are still increasing for Ethereum, with the count hitting 924,614, much higher than 229,191 for Bitcoin. Ethereum is currently trading on a short-term trendline initiated from the $1,100 bottom, with improved buy side volumes, although still not very significant.
The Moving Average Convergence Divergence (MACD) shows a bearish to bullish crossover in the daily chart, while the relative strength index (RSI) is seen at the neutral 50 level. The Parabolic SAR is also in the bullish zone, indicating a positive bias.
Overall, investors should wait for a bullish confirmation before buying Ethereum. A break above $1,250 could see ETH/USD reclaim the $1,300 level, while a break below the $1,150 support could push the price back towards the $1,100 mark.