The Ethereum price is still struggling at the 2025 May level, despite the increase in on-chain activity. Although the ETH charts look so gloomy and the prices are consolidating, there is bullish momentum building underneath the surface.
Ethereum prices are stuck at the 2025 price levels despite the on-chain metrics showing huge numbers. For instance, the transaction count across layer 1 and layer 2 is now about to cross 1.1 billion. Base, a layer-2 blockchain built on the Ethereum chain, saw 316 million transactions, an increase of 43% year over year, while the transactions on Polygon hit 264 million, representing a 161% increase year over year.
Arbitrum transactions saw an increment of 88% year over year, reaching 109 million transactions, while Ethereum L1 had 62 million txns, an increment of +64% year over year.
As shown in the chart above, ETH’s prices have crashed below the lower trendline of the falling wedge, which ETH formed last August. Had ETH continued forming the falling wedge, it would have broken out when the wedge was fully formed. However, it was not to be as ETH slid below the lower trendline of the falling wedge.
Ethereum is currently testing the 50-day moving average as it tries to recover from its 2025 May level. Priced just above $2,150, the coin is currently about to break this resistance level. Looking at the relative strength index (RSI), it is making higher lows and higher highs while the ETH price is consolidating. This is a bullish divergence.
This means that there is bullish momentum building up under cover, and the ETH prices have started to react. Given that this start turns into a rally, there is every chance that the coin could break above the 50-day moving average, which is at $2,172.
