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▲ Ethereum (ETH)/ChatGPT Generated Image
Although Ethereum (ETH) has undergone a short-term price correction, on-chain activity and its long-term chart structure are simultaneously improving, once again raising expectations for a major upward turn.
Bitcoinist reported on May 13 (local time) that despite a slight pullback in Ethereum's price, network activity and key fundamentals are showing bullish signals. The Ethereum network is seeing increased transaction activity, expanded on-chain participation, and growth in key sectors, which continues to support investor confidence in its long-term value.
Leon Waidmann, Head of Research at Lisk, analyzed that Ethereum has been accumulating energy in a three-year sideways trading range since 2023, based on monthly charts. He explained that Ethereum has broken above a multi-year resistance line, and momentum indicators have also broken out of a base area formed over several years. Waidmann stated that the longer the sideways movement, the larger the move after a breakout could be, adding, "Fundamentals are catching up, and the charts are getting ready."
The network's foundation also bolstered the bullish argument. According to Waidmann, over 7.33 million ETH are locked in corporate balance sheets, which accounts for 6% of the total Ethereum supply. Since the Merge update, inflation in the Ethereum ecosystem has been lower than that of Bitcoin (BTC), and transaction volumes on the Ethereum mainnet and Layer 2 solutions have also increased to all-time highs.
Ethereum also maintains dominance in decentralized finance and lending markets. Etherealize cited a Galaxy Research report stating that Ethereum's total value locked (TVL) market share has stably remained between approximately 55% and 60% since mid-2022. The report assessed that Ethereum has secured a trust premium that new chains would find difficult to catch up with in the short term, based on its deep collateral markets, oracle infrastructure, and a track record of enduring multiple market crashes.
The trend of stablecoins and real-world asset tokenization also supported Ethereum's structural strengths. According to the article, the issuance volume of stablecoins on the Ethereum network has expanded to 50% of the total stablecoin market capitalization, and over 60% of tokenized real-world assets have been issued on Ethereum. Given that institutional real-world asset issuers select chains after legal review, custodian integration, and compliance approval, these funds are considered long-term capital with a high probability of remaining within the Ethereum ecosystem.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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