Since hitting a weekly low of $2,251 on September 16, Ethereum (ETH) has shown an upward trend.

At the time of writing, ETH was trading at $2,641, marking a 14.50% increase over the past week.

Prior to this recovery, Ethereum had been on a downward trajectory for the past month.

Given the recent shift in market sentiment, analysts are debating whether this rise is part of a lasting rally, and if so, what could be driving it.

Some suggest the current increase is due to a surge in active buyers.

What does market sentiment indicate? According to ChainStatsPro experts, the rise in active buyers and increased bidding on spot limits are key factors.

In line with this, there is still a liquidity chase happening on ETH futures markets.

However, the CVD remains flat, with bids and asks accumulating around $2,400 and $2,790.

Source: ChainStatsPro. This suggests that active buyers are purchasing ETH at the current market price, reflecting growing demand.

As a result, traders are positioning themselves to buy if ETH drops to $2,400 and to sell if it reaches $2,790.

These order bids point to increased market activity.

Source: IntoTheBlock. Additionally, the rise in the number of active buyers and spot limit investors over the past seven days is reflected in the growing number of active addresses.

According to IntoTheBlock data, active addresses hit 5 million in the past week.

This indicates a rise in transaction volume and more users actively participating in network operations.

This is a bullish market signal, as an increase in active addresses typically leads to higher prices.

What do the ETH charts show? ChainStatsPro has observed a spike in ETH transaction activity over the past week.

These market conditions have led Ethereum to maintain a strong upward momentum throughout the week.

Source: TradingView. First, the increase in buying pressure has been supported by a positive Chaikin Money Flow (CMF).

At the time of writing, Ethereum’s CMF stood at 0.28, indicating active asset accumulation by buyers.

Source: Coinglass. Lastly, Ethereum’s open interest (OI) weighted funding rate remained positive over the past week.

A positive OI-weighted funding rate suggests increased demand for long positions, as long holders are paying premiums.

Therefore, as noted by ChainStatsPro, the number of active ETH buyers continues to grow. This positive market sentiment is positioning the altcoin for further gains.

If current conditions persist, ETH may attempt to break through the $2,800 resistance level in the short term.