Ethereum On-Chain Volume Explodes 288% in Just 21 Days – Is This the Start of a Mega Rally?
Ethereum's blockchain just woke up from its slumber—and it's roaring. On-chain volume skyrocketed nearly 300% in three weeks, leaving traders scrambling to decode the signal from the noise.
What’s driving the surge?
Speculation’s running wild: institutional accumulation, DeFi revival, or just good old-fashioned FOMO? The last time ETH saw this kind of chain activity, it preceded a 2x pump. But let’s not get ahead of ourselves—Wall Street’s still trying to explain why they called it ‘dead’ six months ago.
One thing’s clear: the network’s heartbeat is accelerating. Whether that translates to price fireworks or just another ‘buy the rumor’ trap remains to be seen. Pro tip: watch gas fees. If they spike alongside volume, even the suits might have to admit this isn’t just retail gamblers.
Altseason Incoming? On-Chain Volume Signals Ethereum Is Leading the Charge
According to Ted Pillows, Ethereum’s on-chain USD volume has surged to $10.38 billion, marking its highest level since late 2021. This explosive growth in activity highlights a critical shift in market sentiment and could signal the start of a new chapter for Ethereum and the broader altcoin market.
The rise in volume reflects increasing investor participation and renewed confidence in Ethereum’s ecosystem. After months of stagnation and underperformance relative to Bitcoin, Ethereum is beginning to reclaim dominance. Since late May, ETH has outperformed BTC, and this momentum has now spilled over into several top-tier altcoins. Many analysts believe this could be the beginning of the long-awaited altseason.
What makes this moment especially significant is the convergence of technical strength and macro developments. Legal clarity in the US is improving, institutional capital is flowing in, and the market is displaying clear signs of accumulation rather than distribution. Pillows’ data supports the idea that smart money is positioning for a new cycle centered around Ethereum and the DeFi sector. While some caution that a brief correction may still occur, bullish sentiment is building.
ETH Eyes Breakout As $3,860 Resistance Comes Into Focus
Ethereum (ETH) continues its upward trajectory, currently trading around $3,770 after holding a consistent consolidation pattern just below the $3,860 resistance level. This 4-hour chart shows a clear bullish structure, with ETH forming higher lows since mid-July and testing the same upper boundary multiple times—an ascending triangle formation that typically signals upward continuation.
The 50 SMA (Simple Moving Average) on this timeframe has acted as dynamic support, now aligning around $3,690, which helped absorb recent pullbacks. Volume has slightly decreased during the last few sessions, a common occurrence in consolidation phases before breakout moves. Meanwhile, the 100 and 200 SMAs remain well below the current price, supporting the overall uptrend.
If ETH successfully breaks above the $3,860 resistance with a spike in volume, the next major psychological level to watch is $4,000. A failure to break out, however, may lead to a short-term pullback toward the $3,690–$3,650 range, where buying interest has previously emerged. If momentum continues, ETH could be setting up for its next leg higher, potentially confirming a shift into a broader altcoin rally.
Featured image from Dall-E, chart from TradingView
