Key Insights:

• Ethereum (ETH) price has been trading within the narrow $1,540 – $1,600 range over the past week despite the prevailing bearish sentiment. 
• A vital on-chain indicator has revealed Ethereum is attracting an unusually high number of transactions from new users.
• Technical indicators highlight key resistance and support territory to watch out for in the days ahead. 

Ethereum (ETH) price has been trading within the $1,540 – $1,600 range over the past week despite the prevailing bearish sentiment. A vital on-chain indicator has revealed that a flurry of new users have been buying Ethereum in recent weeks. Can the bearish technical indicators flip bullish this week? 

Ethereum is Attracting Transactions From New Users

Bitcoin price marginally outperformed Ethereum price last week. But amid the intense sell-pressure on ETH, on-chain data reveals that a significant number of new users flocked into the Ethereum ecosystem. 

According to IntoTheBlock, New Adoption Rate on the Ethereum network reached a 1 month peak of 34% on October 14.. This brings it well above the 30-day average of 24%. 

The New Adoption Rate metric measures the percentage of wallet addresses that made their first ever ETH transaction out of all active addresses on a given day. This provides clear insight into the share that newcomers activity on the Ethereum network. 

Given level of sell pressure that ETH withstood, it appears that the traction gained from the new joiners’ transactions played a vital role in helping ETH price maintain the $1,500 support level over the past week. 

ETH Price Prediction: A $1,600 Retest Could Be on the Cards

Ethereum currently trades at $1,565 at price time after a week of relatively narrow price movement. However, technical indicators in the daily time frame are flashing mild-bullish signals.

The 200-day Exponential Moving Average (EMA) stands at $1,556.82, aligning with the SMA, suggesting short-term bullish sentiment.

Ethereum has been trading below the EMA for the better of the week. This impies that it has undergone a relatively lengthy consolidation phase. Both the EMA and SMA now reflect that Ethereum’s price has the potential for an upside movement in the week ahead.

While the $2,000 seems out of reach in the short-term, if the momentum flips bullish, ETH price could realistically hit $1,615 before the bulls encounter major resistance.

After that, it could face stronger resistance near $1,650, and if surpassed, that could signal a major breakout point. 

If the bearish tailwinds regain momentum, ETH Ethereum could find initial support around $1,540. But in the case of a deeper retracement, the $1,490 territory could be vital.