The Ethereum ecosystem is buzzing with activity, but the price of ETH struggles to break through resistance levels.

Ethereum Ecosystem Sees A Surge in Active Users

Over 10 million wallets are now actively interacting with the Ethereum network, including the mainnet and layer-2 solutions. This milestone follows the successful implementation of the Dencun upgrade, which addressed scalability and gas fee concerns.

Analysts predict this number could reach 100 million in the next bull run, driven by lower fees and wider adoption.

Ethereum Dencun Upgrade’s Impact

Dencun utilizes “blobs” to store non-essential data outside the Ethereum Virtual Machine (EVM), streamlining block verification. This innovation has reduced transaction costs on layer-2 platforms, attracting new users and boosting DeFi activity. Total Value Locked (TVL) across layer-2 and DeFi protocols has grown significantly in recent months.

Remaining Challenges

Ethereum’s scalability limitations could resurface during periods of high network usage, potentially driving gas fees back up. Some users might migrate to alternative blockchains like Solana or Avalanche, especially if meme coin deployments become prevalent on Ethereum.

ETH Price on Hold

Despite positive developments, the price of ETH remains stuck around $3,100. Failing to surpass resistance levels at $3,200 and $3,280 has created a short-term downtrend.

If the price falls below $3,100 support, further declines towards $2,850 or even $2,650 are possible.