Ethereum Sees Hot Capital Surge, Price Rebounds, and Layer 2 Booms

• Ethereum’s Layer 2 activity now dominates with over 13.6M unique users.
• Hot capital surged 66% in 11 days, marking a shift in investor sentiment.

Ethereum is showing signs of renewed strength across its network. Recent data indicates a rebound in hot capital and price stability. Market indicators now suggest improving investor sentiment and a shift in trading dynamics. Meanwhile, Layer 2 usage is growing rapidly, reshaping Ethereum’s user activity landscape.

Source: Glassnode

Ethereum’s hot capital has rebounded sharply after bottoming at $2.60 billion on April 17, according to Glassnode data. By April 28, it had risen to $4.34 billion, the highest level since March 26. Analysts interpret this as a sign of increasing investor confidence and capital reallocation into Ethereum’s ecosystem. 

This renewed inflow signals a recovery in sentiment that had weakened earlier in the month. The upward movement in hot capital aligns with Ethereum’s recent price stabilization, hinting at synchronized momentum between market demand and network activity. Observers suggest this capital shift may lay the groundwork for Ethereum’s subsequent rally.

Price Holds Support, Targets Higher Resistance Levels

Ethereum was trading at $1,832.34, marking a recovery after a period of volatility earlier in the year. Technical analysis shows the current price tests the 0.382 Fibonacci retracement level, a key threshold for support and potential resistance. Ethereum is also trading above its 20-day, 50-day, and 100-day moving averages, which confirms short-term bullish momentum.

Ethereum 1-Day Chart Source: TradingView

The Relative Strength Index (RSI) stands at 57.45, indicating neutral territory and space for continued movement. Analysts identified the next resistance at the 0.618 Fibonacci level, near $1,925.55. A breakout above this level could open a path to $2,071.70. On the downside, support at $1,593.73 remains critical to maintain a bullish structure.

However, price action has seen minor intraday pullbacks. On April 30, Ethereum declined by 1.81%, settling at $1,797.18. The drop followed a session high above $1,820, underlining ongoing market fluctuations despite the broader uptrend.

Layer 2 Ecosystem Sees Record Growth and Engagement

Ethereum’s Layer 2 ecosystem is expanding rapidly, driven by rising demand for scalability and lower transaction costs. The number of unique addresses interacting with Layer 2 solutions has reached a new all-time high of 13.6 million, representing a 74% increase in just one week, according to recent ecosystem data.

Ethereum Layer2 Weekly Engagement Source: Growthepie

Activity on Layer 2 networks now stands at 6.69 times that of the Ethereum mainnet. Over 832,000 addresses engage with multiple Layer 2 chains weekly, reflecting widespread adoption. This trend suggests a clear shift in user preference toward Layer 2 scalability tools.

Analysts note that such engagement is reshaping Ethereum’s network activity and reinforcing its position in the broader crypto infrastructure. As users and developers increasingly opt for Layer 2, Ethereum’s transaction load is efficiently distributed, paving the way for sustained network performance and user retention.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.